SIC-21
Historical
Income Taxes–Recovery of Revalued Non-Depreciable Assets
Addressed how to measure deferred tax on revalued non-depreciable assets, confirming that the carrying amount would be recovered through sale. Withdrawn in 2012.
Historical Reference
SIC-21 was withdrawn in December 2010 when the IASB issued amendments to IAS 12 Income Taxes, which superseded SIC-21 by generalising the recovery through sale presumption into a rebuttable presumption for investment property and other non-depreciable revalued assets.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IAS 12 Income Taxes 1
What SIC-21 Addressed (Historical)
What SIC-21 addressed
SIC-21 addressed how to measure deferred tax on revalued non-depreciable assets, such as land. It considered whether the carrying amount of such an asset would be recovered through use or through sale, and how that determination affected the measurement basis for deferred tax liabilities.
2
The Conclusion It Reached (Historical)
The conclusion it reached
SIC-21 concluded that the carrying amount of a revalued non-depreciable asset would be recovered through use if the asset was used in the business, but would be recovered through sale if the asset was held to earn rentals or for capital appreciation, or if the asset was unused. Accordingly, deferred tax should be measured based on the manner in which the carrying amount would be recovered.
3
Where This Guidance Lives Today
Where this guidance lives today
Superseded byIAS 12 Income Taxes
Why withdrawnThe 2010 amendments superseded SIC-21 by generalising the recovery through sale presumption
Current statusSuperseded
Glossary
Deferred tax liability
An amount of tax payable in future periods in respect of taxable temporary differences arising from the revaluation of non-depreciable assets.
Non-depreciable asset
An asset such as land that has an indefinite useful life and is not depreciated, but may be revalued under IAS 16.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-2000
In January 2000 the Standing Interpretations Committee issued SIC-21 Income Taxes–Recovery of Revalued Non-Depreciable Assets.
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-21.
Minor consequential amendment to SIC-21
Dec-2010
In December 2010 the Board issued amendments to IAS 12 Income Taxes which superseded SIC-21.
Superseded by amendments to IAS 12