The Institute of Chartered Accountants of India (ICAI) has released the exposure draft of amendment of International Tax Reform-Pillar Two Models. Also, inviting the comments on the same till 25th August 2023.
Amendment to Ind AS 12 – Income taxes
The announcement states “As you are kindly aware that the Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB). In this regard, it may be noted that IFRS Standards are being issued/revised by the IASB from time to time. As a part of convergence with IFRS Standards, the Ind AS may be issued/revised corresponding to the IFRS Standards. Accordingly, whenever any amendments are made or new IFRS Standard/IFRIC is issued by the IASB, the Accounting Standards Board (ASB) of the ICAI considers those amendments and other related aspects for amending the corresponding Ind AS.
In this regard, the Accounting Standards Board has issued Exposure Draft of International Tax Reform—Pillar Two Model Rules – Amendments to Ind AS 12 corresponding to Amendments to IAS 12 issued by the IASB. The draft amendments to Ind AS 12 aim to provide temporary relief from requirements to recognise and disclose information about deferred tax assets and liabilities arising from Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD).”
In the amendment of Ind AS 12, Income Taxes, Paragraphs 4A, 88A–88D (including their related heading and the box after paragraph 88D) and 98M are added.
The Exposure Draft of Amendments to Ind AS 12 can be assessed here.
Amendments to AS 22 – Accounting for Taxes on Income
Also, the ICAI also announced to amend AS 22, where it was stated that “The Accounting Standards Board has issued Exposure Draft of International Tax Reform—Pillar Two Model Rules – Amendments to AS 22 to provide temporary relief from requirements to recognise and disclose information about deferred tax assets and liabilities arising from Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD).”
In the amendment to AS 22, accounting for taxes on income, Paragraphs 2A, 32A–32D (including their related heading and example after paragraph 32D) and 35.
The Exposure Draft of Amendments to AS 22 can be assessed here.
Comments on the abovementioned Exposure Drafts may be submitted through any of the following modes:
1. Electronically: Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method)
2. Email: Comments can be sent to: commentsasb@icai.in
3. Postal: Secretary, Accounting Standards Board,
The Institute of Chartered Accountants of India,
ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi 110 002
Further clarifications on the Exposure Draft may be sought by e-mail to asb@icai.in.
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