We comment on FRED 83 — Draft amendments to FRS 102 and FRS 101 'International tax reform – Pillar Two model rules'

  • Deloitte FRC letters Image

25 May, 2023

We have published our comment letter on Financial Reporting Exposure Draft (FRED) 83 'Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 101 Reduced Disclosure Framework International tax reform – Pillar Two model rules'.

We welcome the opportunity to respond to FRED 83.

We commend the FRC for acting promptly to address this emerging issue and we encourage the FRC to proceed to issue the final amendments to FRS 101 and FRS 102 as soon as possible.

We support the FRC’s overall approach in relation to the Pillar Two model rules. However, rather than adapt the proposed disclosure requirements set out in the International Accounting Standards Board’s (IASB's) Exposure Draft IASB/ED/2023/1 International Tax Reform—Pillar Two Model Rules – Proposed amendments to IAS 12, we recommend that the FRC incorporates into FRS 102 the disclosure requirements set out in the final amendments to IAS 12 that were issued on 23 May 2023.

Our full comment letter is available here.

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