The International Accounting Standards Board (IASB) has published a project to introduce a limited amendment to the International Accounting Standard No. 12 "Income Taxes." This is to provide exemption for cross-border entities from accounting for deferred taxes that may result from the entity’s application of the requirements of the Organization of Economic Cooperation and Development project to overcome the challenges arising from the digital transformation of the economy known as " International Tax Reform: Pillar Two Model Rules." Saudi Organization for Chartered and Professional Accountants, represented by the Accounting Standards Council, has deemed the proposed amendment appropriate in view of the complications that may accompany the implementation of the project that may lead to amendments to the standard, especially since a number of entities may apply that project before the International Board finishes studying all its accounting implications.
SOCPA detailed comment can be viewed by clicking here.