IFRB 2023/02

The IASB recently published the Exposure Draft International Tax Reform—Pillar Two Model Rules (Proposed Amendments to IAS 12), in response to stakeholder concerns about the potential implications of the income tax accounting, especially accounting for deferred taxes, arising from OECD’s Pillar Two model rules. The Exposure Draft proposes amendments to IAS 12 Income Taxes with an aim to provide a temporary exception from accounting for deferred taxes arising from the implementation of the OECD’s Pillar Two model rules, as well as targeted disclosures for affected entities. BDO’s IFR Bulletin summarises the effects of the proposed amendments, alongwith illustrative examples.