The Financial Reporting Council has released FRED 83-Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – International tax reform – Pillar Two model rules. This FRED proposes to introduce a temporary exception to the accounting for deferred taxes arising from the implementation of the Pillar Two model rules, alongside targeted disclosure requirements.
A small amount of FRS 102 preparers are likely to be impacted by the Pillar Two model rules and FRED 83 is based on a similar proposal issued by the IASB relating to IAS 12.
The shorter than normal consultation period remains open until 24 May, with the FRC planning to finalise any resulting amendments in summer 2023.