• 2024 Issued Standards – IFRIC 21
  The IFRIC Interpretations are available in the 2024 Issued Standards, which include all amendments issued up to and including 31 December 2023.

Registration is required to access the free version of the Issued Standards. This version does not include additional documents that accompany the full standards (such as illustrative examples, implementation guidance and basis for conclusions).

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.

• IAS 1 Presentation of Financial Statements
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 12 Income Taxes
• IAS 20 Government Grants and Disclosure of Government Assistance
• IAS 24 Related Party Disclosures
• IAS 34 Interim Financial Reporting
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets
• IFRIC 6 Liabilities Arising from Participating in a Specific Market