BC100 After considering stakeholders’ concerns, the IASB agreed that entities need time to determine how to apply the principles and requirements in IAS 12 to account for deferred taxes related to top-up tax. The IASB also needs time to engage further with stakeholders and to consider whether any action is needed to support the consistent application of IAS 12. The IASB concluded that it was not feasible to complete these activities before jurisdictions enact new tax laws and thus before entities are required to reflect those laws in accounting for deferred taxes.
BC101 The IASB therefore decided to introduce a temporary exception to the requirements in IAS 12 to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The IASB concluded that doing so would:
(a) provide affected entities with relief from accounting for deferred tax assets and liabilities in relation to complex new tax legislation to be enacted by multiple jurisd
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