UK adopts Pillar Two accounting changes

The UK Endorsement Board (UKEB) has adopted the May 2023 International Accounting Standards Board amendments to IAS 12 international tax reform: Pillar Two model rules. The amendments 'introduce a temporary mandatory exception from accounting for deferred taxes arising from the Pillar Two model rules and a requirement to disclose that the exception has been applied, both of which are applicable immediately and retrospectively. They also introduce further targeted disclosure requirements, effective for annual reporting periods beginning on or after 1 January 2023.'

The UKEB is responsible for endorsement and adoption of international accounting standards in the UK, following post-Brexit delegation of the necessary ministerial powers (see SI 2021/609).