24/04/2023 - EFRAG requests comments on preparatory draft for the endorsement advice on amendments to IAS 12
EFRAG is consulting on its preparatory draft for its Endorsement Advice letter on International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12) against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good. Comments are requested by 24 May 2023.
EFRAG has issued a preparatory draft of its Endorsement Advice letter relating to the endorsement for use in the EU of International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12) ('the Amendments').
The objective of the Amendments is to introduce a mandatory temporary exception to the requirements in IAS 12 Income Taxes (“IAS 12”) to recognise and disclose information about deferred tax assets and liabilities arising from the OECD’s Pillar Two Model Rules. The Amendments also propose the introduction of disclosure requirements.
The temporary exception shall be applied immediately upon issue of the Amendments and retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The disclosure requirements shall be applied for annual reporting periods beginning on or after 1 January 2023.
EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement.
EFRAG is seeking comments on the analyses supporting its preliminary conclusions.
The issuance of a preparatory draft of the Endorsement Advice letter before the issuance of the final Amendments is to allow for the finalisation of the endorsement advice as soon as possible after the IASB has issued the amendments to IAS 12. The preparatory draft of the Endorsement Advice is based on the assumption that the contents of the final Amendments will not differ substantially from the published update of the IASB’s supplementary meeting held on 11 April 2023.
Comments are requested by 24 May 2023.
You can comment on EFRAG’s preparatory draft of its Endorsement Advice letter by clicking on the ‘Comment publication’ link below.
