The proposed amendments aim to provide temporary relief from accounting for deferred taxes arising from the imminent implementation of the Pillar Two model rules published by the OECD.

The IASB issued the draft changes in response to stakeholders’ concerns about the potential implications of these rules for the accounting for income tax in financial statements.

In particular, stakeholders were concerned about the uncertainty over the accounting for deferred taxes arising from the rules. They said there was an urgent need for clarity in the light of the imminent implementation of these rules in some jurisdictions.

The proposed IAS 12 amendments would introduce: