AASB 1060 General Purpose Financial Statements Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities 176-178B: Income tax: disclose information on the nature and financial effect of current and deferred tax including enacted rate and law changes such as Pillar Two, the major components of tax expense, tax on OCI and equity items, the reconciliation of tax expense to accounting profit (or of effective to applicable rate) with the rate basis, changes in the applicable rate, deferred tax balances and movements by type of temporary difference and unused losses and credits, unrecognised deductible differences and losses with expiry dates, dividend tax consequences, and the Pillar Two exception and current tax

What does 176-178B require?

The entity discloses what users need to weigh the nature and financial effect of current and deferred tax from recognised transactions, including enacted or substantively enacted changes in rates and laws such as Pillar Two legislation. It discloses each major component of tax expense or income separately (current tax, prior period adjustments, deferred tax from temporary differences and from rate changes, benefits from previously unrecognised losses, credits or differences, tax status changes, deferred tax asset write-downs and reversals under AASB 112 paragraph 56, and tax on policy changes and errors taken to profit). It also discloses the aggregate current and deferred tax on OCI items and on items taken directly to equity; a numerical reconciliation either of tax expense to accounting profit at the applicable rate or of the average effective rate to the applicable rate, with how the applicable rate is computed; changes in the applicable rate from the prior period; for each type of temporary difference, unused loss and unused credit the closing deferred tax assets and liabilities and the period's movement; the amount and any expiry date of deductible temporary differences, losses and credits with no deferred tax asset recognised; and, where AASB 112 paragraph 52A applies, the nature of the potential tax consequences of paying dividends. An entity within Pillar Two discloses that it has applied the exception from recognising and disclosing related deferred tax (AASB 112 paragraph 4A) and its current tax expense related to Pillar Two income taxes separately.