4‑110 Meaning of Recapture Exception Acc4‑110 Meaning of Recapture Exception Accrual

4‑110 Meaning of Recapture Exception Accrual

A Recapture Exception Accrual means a tax expense accrued in the financial accounts of a Constituent Entity attributable to changes in associated deferred tax liabilities, in respect of any of the following: (a) cost recovery allowances on tangible assets; (b) the cost of a licence or similar arrangement from a government for the use of immovable property or exploitation of natural resources that entails significant investment in tangible assets; (c) research and development expenses; (d) de‑commissioning and remediation expenses; (e) fair value accounting on unrealised net gains; (f) foreign currency exchange net gains; (g) insurance reserves and insurance policy deferred acquisition costs; (h) a gain that is: (i) from the sale of tangible property located in the jurisdiction in which the Constituent Entity is located; and (ii) reinvested in tangible property in that jurisdiction; (i) an additional amount accrued as a result of accounting principle changes with respect to a matter mentioned in any of paragraphs (a) to (h).