IASB publishes amendments to IAS 12 on global minimum taxation

On 23 May 2023, the International Accounting Standards Board (IASB) published the IAS 12 Amendment International Tax Reform - Pillar Two Model Rules on mandatory relief for accounting for deferred taxes from the global minimum taxation.

The amendment includes (see also EAN 03/2023 as well as EAN 12/2023):

• a temporary, mandatory exemption from accounting for deferred taxes resulting from the introduction of the global minimum taxation and
• targeted disclosures in the notes for affected entities to enable users of financial statements to understand the extent to which an entity will be affected by the minimum tax, particularly before the legislation comes into force.

The accounting exemption is to be applied immediately after publication of the amendment. For companies applying EU-IFRS, this obligation only applies after the corresponding EU endorsement.

The amendments relating to the notes are applicable for financial years beginning on or after 1 January 2023. For entities applying EU-IFRS, this requirement only applies after the corresponding EU endorsement.

In interim reporting periods ending on or before 31 December 2023, however, the disclosures in the notes are not required.

The press release is available on the IASB website at this Link.