Deloitte submission to the AASB on accounting for MRRT and PRRT
A copy of our submission to the Australian Accounting Standards Board (AASB or the Board) in relation to the Board’s ongoing deliberations on accounting for proposed Mineral Resource Rent Tax (MRRT) and extension of the Petroleum Resource Rent Tax (PRRT).
- We believe that, due to Interpretation 1003 Australian Petroleum Resource Rent Tax, MRRT/PRRT should be accounted for as an income tax for entities required to comply with Australian Accounting Standards
- We believe that government imposts such as resource royalties and similar obligations are not always accounted for as income taxes under International Financial Reporting Standards (IFRSs) and accordingly, that the AASB should consider withdrawing Interpretation 1003
- There are a number of issues associated with accounting for MRRT/PRRT as an income tax, the most notable of which are the treatment of the ‘market value uplift’ (starting base allowance) and the characterisation and presentation of State Government royalties. We believe there may be more than one method of accounting for these matters.
Read our full submission below.