In its Exposure Draft released on 9 January 2023, the International Accounting Standards Board (IASB) has proposed a temporary exception to the accounting for deferred tax arising from the implementation of the OECD Pillar Two model rules. Also proposed are targeted disclosure requirements for companies affected by the rules.
These proposed amendments to IAS 12 Income Taxes are intended to provide relief for entities subject to the Pillar Two model rules and to avoid inconsistent interpretations of IAS 12 developing in practice.
The OECD Pillar Two rules generally apply to multinational groups with revenue in their consolidated financial statements exceeding €750 million in at least two of the four preceding fiscal years
Comments are requested by the IASB from stakeholders by 10 March 2023 and the IASB plans to complete any resulting amendments in the second quarter of 2023, with the disclosure requirements to apply for annual reporting periods beginning on or after 1 January 2023.