The FRC has issued Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 101 Reduced Disclosure Framework – International tax reform – Pillar Two model rules.
The OECD’s Pillar Two model rules
introduce a global system of interlocking top-up taxes that aim to ensure that large multinational groups pay a minimum amount of income tax. The amendments to FRS 102 introduce a temporary exception to the accounting for deferred taxes arising from the implementation of the OECD’s Pillar Two model rules, alongside targeted disclosure requirements.
The temporary exception is effective immediately and the disclosure requirements are effective for accounting periods beginning on or after 1 January 2023, with early application permitted.
The amendments to FRS 101 provide an exemption from some of the disclosure requirements in IAS 12 Income Taxes
, provided that equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated.
For details please click here