UKEB publishes its Draft Endorsement Criteria Assessment on amendments to IAS 12
27 Jun, 2023
The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment (DECA) which assesses whether 'International Tax Reform: Pillar Two Model Rules (Amendments to IAS 12)', issued by the International Accounting Standards Board (IASB) in May 2023, meet the UK's statutory requirements for adoption of IFRS accounting standards as set out in Statutory Instrument 2019/685.
The Amendments provide a mandatory temporary exception, applicable immediately and retrospectively, from deferred tax accounting in relation to Pillar Two top-up taxes. Entities must disclose that they have applied that exception. There are also additional disclosure requirements which are applicable for annual periods beginning on or after 1 January 2023.
The UKEB's draft assessment concludes that:
- the Amendments meet the criteria of relevance, reliability, comparability and understandability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by SI 2019/685 (see Regulation 7(1)(c)); and
- application of the Amendments is not contrary to the principle that an entity’s accounts must give a true and fair view as required by SI 2019/685 (see Regulation 7(1)(a)).
Additionally the UKEB tentatively concludes that the Amendments are likely to be conducive to the long-term public good in the UK.
Comments on the draft Endorsement Criteria Assessment are requested by 10 July 2023.
For more information, see the Invitation to Comment and draft Endorsement Criteria Assessment on the UKEB's website.
