Feedback on Proposed IFRS Taxonomy Update—International Tax Reform—Pillar Two Model Rules, Supplier Finance Arrangements and Lack of Exchangeability (Agenda Paper 25)

In October 2023, the IASB published the proposed IFRS taxonomy update (PTU) International Tax Reform—Pillar Two Model Rules, Supplier Finance Arrangements and Lack of Exchangeability. The 60-day comment letter period closed on 4 December 2023. The purpose of this meeting was to summarise the feedback received on the PTU and the staff analysis thereof, summarise the next steps in the publication of the IFRS taxonomy update.

Broadly, respondents were supportive of the proposals in the PTU, with specific comments and alternative suggestions discussed in the paper. Respondents suggested improving element and documentation labels for a few elements and more granular elements for narrative disclosures. The staff agreed with most suggestions except those relating to more granular elements for narrative disclosures.

IASB members were be asked if they have any questions or comments on the feedback received or next steps.

IASB discussion

IASB members agreed with the staff’s approach to retain some items but eliminate others, taking into account the feedback received. One IASB member suggested to have a broader discussion in the future on how much context to provide with the tagging, as that seems to come up periodically. It was also noted that only two comment letters were received and that the IASB should analyse how this could be increased. Other IASB members agreed but said that the International Taxonomy Consultative Group (ITCG), which has 25 members, was also involved, so the IASB is not only relying on two stakeholders. The staff responded that the ITCG has more expertise in technology and less in standard-setting. However, there are discussions taking place with major users behind the scenes. One IASB member suggested that the ITCG members could be encouraged to provide comment letters to the IASB on PTUs in the future.