EFRAG draft comment letter on IAS 12 and pillar two income taxes

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

30 Jan, 2023

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the exposure draft 'International Tax Reform — Pillar Two Model Rules (Proposed amendments to IAS 12)' the IASB published 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.

In the draft comment letter, EFRAG welcomes the IASB’s efforts to address the concerns of stakeholders about the implications for income tax accounting resulting from jurisdictions implementing the OECD rules.

EFRAG supports the IASB’s proposal to a temporary exception to the requirements in IAS 12. However, EFRAG will engage with its constituents during the outreach of the exposure draft to ascertain the usefulness of the proposed targeted disclosures for users and to assess the feasibility (including costs) for preparers.

Comments on EFRAG's draft comment letter are requested by 27 February 2023. For more information, see the press release and the draft comment letter on the EFRAG website.

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