CATEGORIES
- (2)Account / Profile
- (499)Accounting
- (6)Audit
- (125)Auditing and Assurance
- (1)Business
- (3)Business Rescue
- (66)CIPC
- (6)Compliance
- (6)Ethics and Professionalism
- (35)Financial Reporting
- (3)Guides
- (1)Individuals Tax
- (2)Law
- (36)Legal and Compliance
- (2)Management
- (12)Money Laundering
- (1)Personal & Professional Development
- (1)Practice Management
- (1)Professional Ethics
- (1)Public Sector
- (82)Regulatory Compliance and Legislation
- (29)SARS Issues
- (11)Sustainability Reporting
- (21)Tax
- (1)Tax Update
- (1)Technology
- Show All
Deferred tax: Changes to IAS 12
- 05 June 2023
- Accounting
- South African Accounting Academy
The amendment will be consolidated into IAS 12 in March 2024, at which point it will be available for users with a free IFRS website registration.
The OECD published the Pillar Two model rules in December 2021 to ensure that large multinational companies would be subject to a minimum 15% tax rate. More than 135 countries and jurisdictions representing more than 90% of global GDP have agreed to the Pillar Two model rules.
The IASB has taken urgent action to respond to stakeholders’ concerns about the uncertainty over the accounting for deferred taxes arising from the implementation of the rules.
Companies can benefit from the temporary exception immediately but are required to provide the disclosures to investors for annual reporting periods beginning on or after 1 January 2023.
The amendments will introduce:
- a temporary exception—to the accounting for deferred taxes arising from jurisdictions implementing the global tax rules. This will help to ensure consistency in the financial statements while easing into the implementation of the rules; and
- targeted disclosure requirements—to help investors better understand a company’s exposure to income taxes arising from the reform, particularly before legislation implementing the rules is in effect.
The IASB has a separate project considering possible amendments to the IFRS for SMEs Accounting Standard related to the OECD tax reform.
Click here to access more information about this project:
https://www.ifrs.org/news-and-events/news/2023/05/iasb-amends-tax-accounting-requirements/
Relevance to Auditors, Independent Reviewers & Accountants:
- As an auditor and independent reviewer, you need to consider your clients’ compliance with accounting standards.
- As an accountant and compiler of financial statements, you need to consider amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
Relevance to Your clients:
- An entity compiling filing financials need to consider amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
Get all your CPD online. SA Accounting Academy (SAAA) offers Subscription Plans, Live Webinars, Webinars On-Demand, Access to Experts, Courses, Articles and more:
https://cpd.accountingacademy.co.za.