The International Accounting Standards Board (IASB) has plans to amend the IFRS for SMEs Standard on June 1, 2023 through publication of its Exposure Draft International Tax Reform—Pillar Two Model Rules—Proposed Amendments to the IFRS for SMEs Standard, which will be available through the Amendments to the IFRS for SMEs Accounting Standard—International Tax Reform—Pillar Two Model Rules project page and its Open for comment section.
“The IASB tentatively decided to propose amendments to the IFRS for SMEs Standard:
- to introduce a temporary exception to the requirements in Section 29 of the Standard for an entity to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes;
- to make the temporary exception mandatory;
- not to specify how long the temporary exception will be in place;
- to require an entity to disclose that it has applied the temporary exception;
- to require an entity to apply these amendments immediately upon their issuance and retrospectively in accordance with Section 10 of the Standard (‘Accounting Policies, Estimates and Errors’);
- to require an entity to disclose separately its current tax expense (income) related to Pillar Two income taxes; and
- to require an entity to apply this disclosure requirement for annual reporting periods beginning on or after 1 January 2023.”
More information on the IASB proposed amendment to the IFRS for SMEs Standard for OECD tax reform is available here.