Accounting Standard AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures (Cth)

AASB Standard AASB 2023-4 September 2023

Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures [AASB 112 & AASB 1060]

Obtaining a copy of this Accounting Standard This Standard is available on the AASB website: www.aasb.gov.au.

Australian Accounting Standards Board PO Box 204 Collins Street West Victoria 8007 AUSTRALIA

Phone: (03) 9617 7600 E-mail: standard@aasb.gov.au Website: www.aasb.gov.au

Other enquiries Phone: (03) 9617 7600 E-mail: standard@aasb.gov.au

COPYRIGHT © Commonwealth of Australia 2023 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission. Requests and enquiries concerning reproduction and rights should be addressed to The Managing Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.

ISSN 1036-4803

Contents

PREFACE ACCOUNTING STANDARD AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures

from paragraph OBJECTIVE 1 APPLICATION 4 AMENDMENTS TO AASB 1060 7 AMENDMENTS TO AASB 112 8 COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 9

BASIS FOR CONCLUSIONS

Australian Accounting Standard AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures is set out in paragraphs 1–9. All the paragraphs have equal authority.

Preface

Standards amended by AASB 2023-4 This Standard makes amendments to AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (March 2020) and AASB 112 Income Taxes (August 2015).

Main features of this Standard

Main requirements AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules (June 2023) amended AASB 112 to introduce: (a) a mandatory temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD); and (b) targeted disclosure requirements to help financial statement users better understand an entity's exposure to income taxes arising from the reform, particularly in periods before legislation implementing the rules is in effect. This Standard amends AASB 1060 to require a Tier 2 entity to disclose: (a) that it has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes (see AASB 112 paragraph 4A); and (b) its current tax expense (income) related to Pillar Two income taxes. This Standard also amends AASB 112 to extend the exemption from complying with the disclosure requirements of AASB 112 for entities that apply AASB 1060 to ensure Tier 2 entities are not required to comply with the new disclosure requirements in AASB 112 when preparing their Tier 2 financial statements.