The International Accounting Standards Board (IASB) has published a proposed update to the IFRS Accounting Taxonomy 2023 to reflect recent amendments to the following IFRS Accounting Standards: International Tax Reform—Pillar Two Model Rules, which amended IAS 12 Income Taxes and was issued in May 2023; International Tax Reform—Pillar Two Model Rules, which amended Section 29 of the IFRS for SMEs Standard and was issued in September 2023; Supplier Finance Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures and was issued in May 2023; and Lack of Exchangeability, which amended IAS 21 The Effects of Changes in Foreign Exchange Rates and was issued in August 2023.
The Proposed IFRS Taxonomy Update includes changes to the IFRS Accounting Taxonomy elements to reflect the new and amended disclosure requirements introduced by these amendments. The deadline for submitting comments is 4 December 2023.
Several interesting developments are afoot. For instance, the IASB’s International Tax Reform—Pillar Two Model Rules, issued in a May 2023 amendment, introduces a temporary exception to the accounting for deferred tax assets and liabilities related to Pillar Two income taxes. The amendment also adds targeted disclosure requirements for affected entities, including information about an entity’s exposure to Pillar Two income taxes (before Pillar Two legislation is effective) and current tax expenses related to Pillar Two income taxes (when Pillar Two legislation is effective).
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