MCA issues Companies (Accounting Standards) Amendment Rules, 2026

The Ministry of Corporate Affair (“MCA”) has issued Companies (Accounting Standards) Amendment Rules, 2026 amending the Companies (Indian Accounting Standards) Rules, 2015. These rules are made by the Central Government in consultation with the National Financial Reporting Authority. 

Key Highlights:

1. This Standard applies to taxes on income arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD), including tax law that implements qualified domestic minimum top-up taxes described in those rules. Such tax law, and the taxes on income arising from it, are hereafter referred to as ‘Pillar Two legislation’ and ‘Pillar Two income taxes’. As an exception to the requirements in this Standard, an enterprise should neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.
2. An enterprise should disclose that it has applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
3. An enterprise should disclose separately its current tax expense (income) related to Pillar Two income taxes.
4. In periods in which Pillar Two legislation is enacted or substantively enacted but not yet in effect, an enterprise should disclose known or reasonably estimable information that helps users of financial statements understand the enterprise’s exposure to Pillar Two income taxes arising from that legislation.

Source: Ministry of Corporate Affairs