Can someone please make this below guidance a bit simple for me to follow:
The attribution of tax deductions has pivotal implications because temporary differences only arise on initial recognition if tax deductions are assigned to the lease liability. When deductions are associated with the lease asset, the tax bases of the lease asset and lease liability equal their carrying amounts, reflecting that the entity will receive tax deductions equal to the carrying amount of the lease asset and no deductions in respect of the lease liability. In such cases, no temporary differences arise on initial recognition of the lease contract and the initial recognition exemption is not applicable (IAS 12.BC76)
