AASB amends tax rules for international tax reform

The Australian Accounting Standards Board (AASB) has provided temporary relief from accounting for deferred taxes arising from OECD’s international tax reform.

The amendment will introduce a mandatory temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules published by the OECD.

The amendment will also introduce 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.

The Standard applies to annual periods beginning on or after January 1, 2023, that end on or after June 30, 2023.