Submissions to XRB closed on 15 February 2023. Submissions to IASB closed on 10 March 2023.
International Tax Reform – Pillar Two Model Rules
The International Accounting Standards Board (IASB) has issued an exposure draft: International Tax Reform—Pillar Two Model Rules (the ED) which proposes amends to IAS 12 Income Taxes (IAS 12).
In December 2021, the Organisation for Economic Co-operation and Development (OECD) published its Pillar Two model rules that:
In response to the stakeholders concerns about the uncertainty over the accounting for deferred taxes arising from jurisdictions implementing the Pillar Two model rules, the IASB proposes to introduce:
- a temporary mandatory exception to the accounting for deferred taxes arising from the implementation of the Pillar Two model rules; and
- targeted disclosure requirements for affected companies.
The IASB expects the proposed amendments to provide timely relief for affected entities and avoid inconsistent interpretations of IAS 12 developing in practice.
Accessing the Consultation Document
Thank you to everyone who provided feedback on this consultation. The New Zealand Accounting Standards Board considered the formal and informal feedback received at their February meeting and decided not to comment on the ED but continues to keep a close eye on the project development.
The submission received can be viewed below.