Commission Regulation (EU) 2023/2468 of 8 November 2023 amending Regulation (EU) 2023/1803 as regards International Accounting Standard 12

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (1), and in particular Article 3(1) thereof,

Whereas:

(1) By Commission Regulation (EU) 2023/1803 (2) certain international accounting standards and interpretations that were in existence at 8 September 2022 were adopted.

(2) On 23 May 2023, the International Accounting Standards Board (‘IASB’) issued certain amendments to International Accounting Standard 12 Income Taxes (‘IAS 12’). The amendments introduced a temporary exception from accounting for deferred taxes arising from the implementation of the OECD’s Pillar Two model rules, as well as targeted disclosures for affected entities.

(3) The temporary exception is to be applied immediately upon the issue of those amendments by the IASB and retrospectively in accordance with International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors (‘IAS 8’). The disclosure requirements are to be applied to annual reporting periods beginning on or after 1 January 2023. A company is not required to apply the disclosure requirements in interim financial reports for interim periods ending on or before 31 December 2023.

(4) Following a consultation of the European financial reporting advisory group EFRAG, the Commission concludes that the amendments to IAS 12 meet the conditions for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.

(5) Some third countries have already implemented the OECD’s Pillar Two model rules this year. Unless a decision is taken on the applicability of the amendments to IAS 12, EU groups will have to recognise these second pillar increases as deferred taxes in their interim consolidated financial statements. In order to prevent this, an urgent adoption of this decision is needed for groups established in the Union.

(6) Regulation (EU) 2023/1803 should therefore be amended accordingly.

(7) The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,

HAS ADOPTED THIS REGULATION:

Article 1

In the Annex to Regulation (EU) 2023/1803, International Accounting Standard 12 Income Taxes is amended as set out in the Annex to this Regulation.

Article 2

Each company shall apply:

(a) paragraphs 4A and 88A of the Annex to this Regulation immediately upon the issue of these amendments and retrospectively in accordance with IAS 8; and

(b) paragraphs 88B-88D of the Annex to this Regulation for annual reporting periods beginning on or after 1 January 2023. A company is not required to disclose the information required by these paragraphs for any interim period ending on or before 31 December 2023.

Article 3

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 8 November 2023.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 243, 11.9.2002, p. 1.

(2) Commission Regulation (EU) 2023/1803 of 13 September 2023 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 237, 26.9.2023, p. 1).