2. Adoption Statement - International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12)

0The UK Endorsement Board is designated under regulation 2(1) of The International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609¹ (“the Delegating Regulations") for the purpose of enabling it to exercise functions of the Secretary of State under Chapter 3 of Part 2 of The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685² (“the Regulations").

1The UK Endorsement Board, in exercise of the powers conferred by regulation 6(1) of the Regulations, adopts the amendments to international accounting standards International Tax Reform–Pillar Two Model Rules (Amendments to IAS 12), published on 23 May 2023 by the International Accounting Standards Board (IASB), for use within the United Kingdom.

2In accordance with regulation 7(1) of the Regulations, the UK Endorsement Board is of the view that:

1. the standard³ is not contrary to either of the following principles-
   1. an undertaking's accounts must give a true and fair view of the undertaking's assets, liabilities, financial position and profit or loss;
   2. consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking;
2. the use of the standard is likely to be conducive to the long term public good in the United Kingdom; and
3. the standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

3In accordance with regulation 8 of the Regulations, the UK Endorsement Board is of the view that adequate consultation with persons representative of those with an interest in the quality and availability of accounts, including users and preparers of accounts, has been undertaken before the adoption decision.

4The exception, and the requirement to disclose that the exception has been applied, provided by the adopted amendments to international accounting standards in paragraph 2, must be used immediately and retrospectively from the date of adoption.

5The remaining disclosure requirements provided by the adopted amendments to international accounting standards in paragraph 2 must be used for annual reporting periods beginning on or after 1 January 2023. An entity is not required to make these disclosures for any interim period ending on or before 31 December 2023.

6The text of the adopted amendments to international accounting standards is set out in the annex to this statement.

Approval by the UKEB Board

International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12) published in May 2023 by the IASB was approved for adoption by 12 members of the UK Endorsement Board.

• Pauline Wallace (Chair)
• Amir Amel-Zadeh
• Michael Ashley
• Philip Aspin
• Kathryn Cearns
• Katherine Coates
• Robin Cohen
• Edward Knapp
• Paul Lee
• Giles Mullins
• Liz Murrall
• Michael Wells

19 July 2023