AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures

Monday, September 25, 2023

The AASB has issued AASB 2023-4 to amend AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities and AASB 112 Income Taxes.

AASB 2023-4 amends AASB 1060 to require a Tier 2 entity to disclose:

  1. that it has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes (see AASB 112 paragraph 4A); and
  2. its current tax expense (income) related to Pillar Two income taxes.

AASB 2023-4 also amends AASB 112 to extend the exemption from complying with the disclosure requirements of AASB 112 for entities that apply AASB 1060.  This ensures Tier 2 entities are not required to comply with the new Pillar Two disclosure requirements in AASB 112 when preparing their Tier 2 financial statements.

AASB 2023-4 applies to annual periods beginning on or after 1 January 2023 that end on or after 30 September 2023.  Earlier application is permitted for any period ending before 30 September 2023, including the 2022/23 financial year.

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