02/06/2023 - EFRAG endorsement advice on amendments to IAS 12 and feedback statement on EFRAG draft comment letter
EFRAG has completed its due process regarding Amendments to IAS 12 - International Tax Reform—Pillar Two Model Rules and has submitted its Endorsement Advice Letter to the European Commission.
EFRAG has also published its Feedback Statement related to its final comment letter on the proposed amendments to IAS 12.
On 23 May 2023, the IASB issued Amendments to IAS 12 - International Tax Reform—Pillar Two Model Rules (“the Amendments”) which was initially issued as an Exposure Draft ED/2023/1 (“the ED”) in January 2023.
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 introduce targeted disclosure requirements.
The temporary exception will be applicable immediately upon the issue of the Amendments and retrospectively in accordance with IAS 8, whereas the targeted disclosure requirements will be applicable for annual reporting periods beginning on or after 1 January 2023.
EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet the technical endorsement criteria of the IAS Regulation and is conducive to the European public good. EFRAG therefore recommends its endorsement. EFRAG's recommendation can be found in the letter to the European Commission and the accompanying appendices.
The Endorsement Advice Letter to the European Commission can be found here.
EFRAG has also updated its Endorsement Status Report, which can be downloaded here on EFRAG's web page.
Furthermore, EFRAG has published its Feedback Statement, which summarises the main comments received by EFRAG on its draft comment letter on the ED issued on 30 January 2023 and explains how those comments were considered by EFRAG during its technical discussions leading to the publication of EFRAG’s final comment letter (“FCL”) on 13 March 2023.
