January 2023

Accounting Standards Board of Canada and the Accounting Standards Board of Japan Hold Bilateral Meeting in Toronto

Jan 09, 2023

On January 9, 2023, the Accounting Standards Board (AcSB) of Canada and Accounting Standards Board of Japan (ASBJ) held their fourth bilateral meeting in Toronto. The Boards provided updates on their activities and discussed topics of mutual interest, such as crypto assets.

Representatives from Financial Reporting & Assurance Standards Canada’s sustainability standards team and the Sustainability Standards Board of Japan (SSBJ) also attended the meeting. They shared updates on their activities and discussed the connectivity between sustainability and financial reporting.

Review the press release on the AcSB's website.

AcSB Exposure Draft: International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12)

Jan 24, 2023

On January 24, 2023, the Ac­count­ing Stan­dards Board (AcSB) has issued an Exposure Draft, entitled “International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12)”. Comments are requested by March 10, 2023.

The AcSB Exposure Draft is similar to the Exposure Draft of the same name recently issued by the IASB, and reflects proposals made by the IASB that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.

The AcSB encourages Canadian stakeholders to respond to the IASB on its Exposure Draft. Specific questions on which the IASB would like input are provided in the Invitation to Comment in its Exposure Draft. The AcSB requests that comment letters be sent directly to the IASB with a copy to the AcSB. Comments to the IASB are due by March 10, 2023. Responses to the AcSB on its Exposure Draft are due on the same date.

Re­view the Exposure Draft  on the AcSB's web­site.

Glossy Annual Report Submission

Jan 11, 2023

On January 11, 2023, the Securities and Exchange Commission's (SEC) Division of Corporation Finance withdrew the guidance that the Staff would not object if a company posts an electronic version of its glossy annual report to its corporate website by the due date in lieu of mailing paper copies or submitting it on EDGAR.

The Staff’s action was prompted by the SEC’s adoption of a new electronic filing requirement for the glossy annual report that is required under Exchange Act Rules 14a-3 and 14c-3. As of Wednesday, January 11, 2023, it is now mandatory for glossy annual reports to be submitted to the SEC via EDGAR. Foreign private issuers that furnish their glossy annual report in response to the requirements of Form 6-K also have to submit those reports via EDGAR.

The annual report is filed under the EDGAR header submission type “ARS,” and, unlike your other EDGAR filings which must be filed in HTML format, the glossy annual report is submitted as a PDF file.

Review the following information:


IASB issues “In Brief” which discusses merger and acquisition disclosures and goodwill accounting

Jan 31, 2023

On Jan­u­ary 31, 2023, the IASB has issued an article ‘In Brief’ which discusses two decisions related to the Business Combinations — Disclosures, Goodwill and Impairment project.

Specifically, IASB member Rika Suzuki takes a look into (i) how companies could disclose better information about business combinations and (ii) whether to retain the impairment-only model to account for goodwill or to explore reintroducing amortization of goodwill.

For more information, see the press release and ‘In Brief’ article on the IFRS Foundation’s website.

IASB publishes proposed amendments to IAS 12 to provide a temporary exception to the requirements regarding deferred tax assets and liabilities related to pillar two income taxes

Jan 09, 2023

On January 9, 2023, the International Accounting Standards Board (IASB) published an exposure draft "International Tax Reform — Pillar Two Model Rules (Proposed amendments to IAS 12)" to respond to stakeholders’ concerns about the potential implications of the imminent implementation of the OECD pillar two model rules on the accounting for income taxes. Comments are requested by March 10, 2023.



In March 2022, the OECD released technical guidance on its 15% global minimum tax agreed as the second ‘pillar’ of a project to address the tax challenges arising from digitalisation of the economy. This guidance elaborates on the application and operation of the Global Anti-Base Erosion (GloBE) Rules agreed and released in December 2021 which lay out a co-ordinated system to ensure that multinational enterprises with revenues above €750 million pay tax of at least 15% on the income arising in each of the jurisdictions in which they operate.

The IASB decided to respond to stakeholders’ concerns about the potential implications of the imminent implementation of these rules on the accounting for income taxes by jurisdictions. In particular, the IASB noted that the situation is very complicated as:

  • jurisdictions may change statutory tax rates to avoid being considered a low-tax environment;
  • companies might decide to move their business to jurisdictions with higher statutory tax rates; and
  • companies might engage in business that comes with tax incentives that might bring down their statutory tax rate to below 15% although the jurisdiction they are doing business in is not generally considered a low-tax environment.

All of these and further considerations would entail most complicated calculations of deferred tax in a situation that is highly volatile due to the fact that jurisdictions implement the OECD rules at different speed and different points of time. Due to the many unknown variables involved, the IASB has decided to propose an exemption until the global tax system has settled and reestablished itself and the IASB can thoroughly assess the situation and provide a reliable solution.


Suggested changes

The proposed amendments in exposure draft IASB/ED/2023/1 International Tax Reform — Pillar Two Model Rules (Proposed amendments to IAS 12) are:

  • The IASB proposes to provide an exception to the requirements in IAS 12 that an entity does not recognise and does not disclose information about deferred tax assets and liabilities related to the OECD pillar two income taxes. An entity would disclose that it has applied the exception.
  • The IASB proposes that, in periods in which pillar two legislation is enacted or substantively enacted, but not yet in effect, an entity would disclose:
    • information about such legislation enacted or substantively enacted where the entity operates;
    • the jurisdictions in which the entity’s average effective tax rate is below 15%; and
    • whether there are jurisdictions where the entity expects either to pay pillar two income taxes although the 15% threshold does not apply or not to pay pillar two income taxes although the 15% threshold does apply.
  • The IASB proposes that an entity applies the exception immediately upon issuance of the amendments and retrospectively in accordance with IAS 8 and the disclosure requirements for annual reporting periods beginning on or after January 1, 2023.

Comments on the proposed changes are requested by March 10, 2023 (the DPOC agreed to a shortened comment period in view of the urgency of the matter).


Additional information


OECD Pillar One Amount A: Digital services taxes and relevant similar measures

Jan 19, 2023

As part of the ongoing work on a two-pillar approach to global tax reform, the OECD published a consultation document on draft multilateral convention provisions on the removal of digital services taxes and other relevant similar measures relating to the new taxing right under Amount A of Pillar One.

Review the article

OECD Pillar Two: Information return and safe harbors published

Jan 19, 2023

The OECD has published an implementation package relating to the Pillar Two global minimum tax rules, which includes guidance on safe harbors and public consultation documents on a standardized information return and tax certainty.

Review the article

SEC Announces Spring 2022 Regulatory Agenda

Jan 16, 2023

The Securities and Exchange Commission (SEC) released the Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions. The report, which includes contributions related to the Securities and Exchange Commission, lists short- and long-term regulatory actions that administrative agencies plan to take.

Review the press release and rulemaking list on the SEC's website.

SEC Appoints Chief Accountant

Jan 11, 2023

On January 11, 2023, the Securities and Exchange Commission (SEC) announced the appointment of Paul Munter as chief accountant in the agency’s Office of the Chief Accountant (OCA). Mr. Munter has served as the OCA’s acting chief accountant since January 2021.

As Chief Accountant, Mr. Munter will continue to lead the Office of the Chief Accountant (OCA) and serve as the principal advisor to the Commission on accounting and auditing matters. He also will be responsible for assisting the Commission in discharging its oversight of both the Financial Accounting Standards Board (FASB) and the Public Company Accounting Oversight Board (PCAOB).

Review the press release on the SEC’s website.

Updated IASB and ISSB work plan — Analysis (January 2023)

Jan 30, 2023

Following the IASB's and ISSB's January 2023 meetings, we have analyzed the work plan on the IFRS Foun­da­tion website to see what changes have resulted from the meetings and other de­vel­op­ments since the work plan was last revised in December 2022.

Below is an analysis of all changes made to the work plan since our last analysis on December 19, 2022.

Stan­dard-set­ting projects

Main­te­nance projects

Research projects

Strategy & gov­er­nance projects

Other projects

The above is a faithful com­par­i­son of the IASB and ISSB work plan at December 19, 2022 and January 30, 2023 respectively. For access to the current work plan at any time, please click here.

Correction list for hyphenation

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