27. February 2023

ASCG comments on IASB/ED2023/1

Today the ASCG submitted its comments to the IASB and EFRAG on the IASB/ED/2023/1 International Tax Reform—Pillar Two Model Rules (Proposed amendments to IAS 12).

The ASCG agrees with the Board’s proposal to introduce a mandatory exception to the requirements in IAS 12 to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. However, the ASCG has significant doubts that the proposed disclosure requirements would result in information that is relevant to users of financial statements, while still creating significant incremental operational efforts for preparers, i.e., producing this information will result in significant additional cost.

Therefore, we recommend that the IASB reconsiders the disclosure requirements drafted in paragraph 88C of the ED. If the IASB nonetheless retains the proposed disclosure requirements, it is necessary that it investigates and explains why these disclosures will be decision-useful and that the benefits of these disclosures exceed the costs of obtaining the information.