EACB agrees with the IASB proposal to introduce a temporary mandatory exception to the requirements in IAS 12 Income Taxes. However, we are of the view that such exception should have limited duration. In this regard, EACB suggests setting the earliest date on which it will reconsider to terminate the exception.
While we agree that the reporting entity should disclose information about jurisdictions subject to enacted Pillar Two legislation, however, in order to avoid undue cost and efforts in the limited timeframe, we would be in favor of disclosing information only about the material jurisdictions for the entity.
When it comes to the effective date and transition, EACB would like to recommend that the application date be postponed, and to not apply to the financial statements relating to the 2023 reporting year.