The IASB has proposed amendments to IAS 12, Income Taxes, which are intended to provide temporary relief from accounting for deferred taxes arising from the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD).
The proposed amendments would introduce a temporary exception to the accounting for deferred taxes arising from the implementation of the rules, and targeted disclosure requirements for affected companies, an IFRS news release said.
These amendments are in response to stakeholders’ concerns around uncertainty over the accounting for deferred taxes arising from the rules, and an “urgent need for clarity in the light of the imminent implementation of these rules in some jurisdictions,” the news release said.
“The IASB is monitoring developments in this space and in response has proposed amendments that will provide timely relief for affected companies and will avoid inconsistent interpretations, and therefore inconsistent application, of IAS 12 while providing investors with useful information,” Andreas Barckow, chair of the IASB, said in the release.
The exposure draft, titled International Tax Reform — Pillar Two Model Rules, is open for comment until 10 March.
The IASB said it will consider comments and decide whether to proceed with the proposed amendments. The board plans to complete any resulting amendments in the second quarter of 2023.
Comments can be submitted online or by email to commentletters@ifrs.org.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.