The proposals are open for consultation until March 10, 2023, and the IASB expects to finalise any amendments in the second quarter of 2023.
The international implementation of the Pillar Two GloBE Rules gives rise to a number of tricky tax accounting issues, including how to account for top-up tax, what information should be disclosed when accounting for deferred taxes related to top-up tax, and how useful that information would be.
The Pillar Two GloBE Rules may flow from the financial accounts but they will also have an impact on the financial accounts.
The problem is exacerbated as many jurisdictions are to implement Pillar Two legislation in 2023 and there is therefore a relatively short time-scale in which to determine a unified approach. If no action were taken this could result in entities applying their own interpretations with different accounting treatments being applied between MNEs and information that may not be useful for users of financial statements.
Given there is insufficient time for the IASB to undertake a detailed consideration of the impact of the GloBE rules on IAS 12, the IASB Exposure Draft proposes:
Sign into your account to access this analysis
Not a Subscriber?
If you haven’t got a subscription you can join up below.
Lee is a qualified Chartered Accountant and Chartered Tax Adviser.
A former Senior Tax Analyst at Bloomberg Tax, Lee began his career in
Ernst & Young's Entrepreneurial Services department and has 20 years of international tax planning experience.
Lee's books have been recommended by The Times, The Guardian and The Telegraph.
This website is not affiliated with or related to the OECD. We provide independent insights and analysis on the OECD Two-Pillar Solution