IFRIC 21 Levies
Published May 2013. Effective 1 January 2014 (17 June 2014 for EU preparers).
Free to view
Financial Reporting Faculty members only
IFRIC 21 provides guidance on when to recognise a liability for a levy imposed by a government, other than those levies within the scope of other standards eg Income taxes and fines or penalties imposed for breaches of legislation.
A liability to pay levies is recognised when an obligating event takes place, such as the generation of revenue in the current period. There is no obligating event where a levy is triggered in a future period and an entity is economically compelled to continue to operate in the future period or the financial statements are prepared on a going concern basis suggesting that the entity will continue to operate in the future period.
If the obligating event occurs over a period of time, the liability is recognised progressively; if the obligating event is reaching a minimum threshold, the liability is recognised when the minimum threshold is met.
Illustrative examples accompany IFRIC 21 and these detail how to account for various types of levies.
Which version of the interpretation?
'Which version of the interpretation?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.
|Annual period starts||Effective version of standard||Notes on amendments|
|On or after 1 January 2017||IFRIC 21 2020 Required Standards||-|
IFRSs referred to by IFRIC 21
IFRICs referred to by IFRIC 21
This page was last updated 22 January 2020
How standards trackers work
Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via eIFRS.
ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.