Accounting Standard AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures
Finalisation of ED 325 proposalsFinalisation of ED 325 proposals
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Finalisation of ED 325 proposals
BC20 Following the consultation period, and after considering the comments received, the Board decided to proceed with issuing this Standard, with minimal changes from the proposals in ED 325.
Feedback from respondents on ED 325
BC21 The Board received two formal comment letters on ED 325. The feedback received indicated that, in general, both stakeholders were supportive of the proposals. However, one stakeholder provided additional feedback.
BC22 The stakeholder suggested that the proposed clarification to paragraph 176 was not necessary because it is already understood that the “transactions and other events” referred to in paragraph 176 include the enactment or substantive enactment of tax rates and laws. They also suggested that if the Board is concerned that this may not be the case, the clarification should be worded more broadly than specifically referring to Pillar Two legislation, or else the Board could consider clarifying this in the Basis for Conclusions.
BC23 The Board considered this feedback, along with feedback received by the IASB on IASB/ED/2023/3 and decided to generalise the wording of the clarification to paragraph 176 and refer to the Pillar Two legislation as an example.