On 20 June 2023, Finance (No. 2) Bill 2023 completed its third reading in the House of Commons and became substantively enacted for IFRS (and UK GAAP) purposes. Royal Assent was received on 11 July and the Bill is therefore also considered enacted for US GAAP purposes.
This represents a significant milestone in the UK’s introduction of the OECD Pillar Two regime, as impacted tax balances in the financial statements are required to be adjusted for a change in law substantively enacted (or ‘enacted’ for US GAAP) at the balance sheet date.
This article outlines the reporting requirements and challenges for groups to prepare for the upcoming implementation of Pillar Two rules, including disclosures and potential future changes.