Document ID: chunk:federal_register_of_legislation:F2023L01301:body:0:p2
Version: federal_register_of_legislation:F2023L01301
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from complying with the disclosure requirements of AASB 112 for entities that apply AASB 1060 to ensure Tier 2 entities are not required to comply with the new disclosure requirements in AASB 112 when preparing their Tier 2 financial statements.

Application date
This Standard applies to annual periods beginning on or after 1 January 2023 that end on or after 30 September 2023, with earlier application permitted for any period ending before 30 September 2023, including the 2022/23 financial year.

Accounting Standard AASB 2023-4
The Australian Accounting Standards Board makes Accounting Standard AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures under section 334 of the Corporations Act 2001.
Keith Kendall
Dated 14 September 2023 Chair – AASB

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

Objective
     1                        This Standard amends AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (March 2020) to require a Tier 2 entity to disclose:
          (a)                    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
          (b)                   its current tax expense (income) related to Pillar Two income taxes.
     2                        This Standard also amends AASB 112 Income Taxes (August 2015) to extend the exemption from complying with the disclosure requirements of AASB 112 for entities that apply AASB 1060 to ensure Tier 2 entities are not required to comply with the disclosure requirements in AASB 112 when preparing their financial statements.
     3                        These amendments reflect the issuance of AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules (June 2023), which amended AASB 112 to introduce:
          (a)                    a mandatory temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD); and
          (b)                   targeted disclosure requirements to help financial statement users better understand an entity's exposure to income taxes arising from the reform.

Application
     4                        The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 1060 and AASB 112 set out in AASB 1057 Application of Australian Accounting Standards.
     5                        This Standard applies to annual periods beginning on or after 1 January 2023 that end on or after 30 September 2023.  Earlier application is permitted for periods that end before 30 September 2023.
     6                        This Standard uses underlining and other typographical material to identify the amendments to AASB 1060 and AASB 112 in order to make