IASB confirms temporary relief from deferred tax accounting following OECD Pillar Two tax reform
Apr 11, 2023
On April 11, 2023, the International Accounting Standards Board (IASB) announced that it has finalized its amendments to IAS 12, Income Taxes, following the issue of the Pillar Two model rules published by the Organization for Economic Co-operation and Development (OECD).
The amendments, approved in a special supplementary meeting, will provide temporary relief for companies from having to account for deferred taxes arising from the implementation of the Pillar Two model rules.
The amendments will introduce:
- a temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the global tax rules; and
- targeted disclosure requirements for affected companies to help users of the financial statements better understand a company’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.
The final amendments to IAS 12, Income Taxes, are expected to be issued by the end of May 2023.
Review the press release on the IFRS website.
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