Issues
7
To clarify the accounting for a liability to pay a levy, this Interpretation addresses the following issues:
(a) what is the obligating event that gives rise to the recognition of a liability to pay a levy?
(b) does economic compulsion to continue to operate in a future period create a constructive obligation to pay a levy that will be triggered by operating in that future period?
(c) does the going concern assumption imply that an entity has a present obligation to pay a levy that will be triggered by operating in a future period?
(d) does the recognition of a liability to pay a levy arise at a point in time or does it, in some circumstances, arise progressively over time?
(e) what is the obligating event that gives rise to the recognition of a liability to pay a levy that is triggered if a minimum threshold is reached?
(f) are the principles for recognising in the annual financial statements and in the interim financial report a liability to pay a levy the same?