The Malaysian Accounting Standards Board (MASB) has today issued International Tax Reform—Pillar Two Model Rules (Amendments to MFRS 112 Income Taxes).
The Amendments is word-for-word International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12 Income Taxes) issued by the International Accounting Standards Board (IASB).
ABOUT THE AMENDMENTS
Amendments to MFRS 112 give entities temporary relief from recognising and disclosing accounting for deferred taxes arising from the Organisation for Economic Co-operation and Development’s (OECD) international tax reform; and introduces targeted disclosure requirements to help investors better understand an entity’s exposure to income taxes arising from the reform, particularly before legislation implementing the rules is in effect.
Applying the temporary relief, entities neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The relief will help to ensure consistency in the financial statements while easing into the implementation of the rules by allowing time for entities to assess how they are affected.
Entities can benefit from the temporary relief immediately but are required to provide the disclosures to investors for annual reporting periods beginning on or after 1 January 2023. In applying the new disclosure requirements, entities are not required to disclose them for any interim period ending on or before 31 December 2023.
The “Notice of Issuance” can be downloaded here.
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