ICAI Issues Amendments to AS 22, Accounting for Taxes on Income

The Institute of Chartered Accountants of India (ICAI) has amended Accounting Standard (AS) 22, addressing deferred tax accounting for non-company entities under the OECD/G20's Pillar Two Model Rules. These amendments include a temporary exception for recognizing and disclosing deferred tax assets and liabilities related to top-up tax. The changes are effective from April 1, 2024, and aim to ensure that large multinational enterprises pay a minimum level of tax in each operating jurisdiction.