Summary of material accounting policies - Changes in accounting policies, comparability and adjustments

12 Months Ended

Dec. 31, 2023

Disclosure Of Material Changes In Accounting Policies [Line Items]

Changes in accounting policies, comparability and other adjustments

b) Changes in accounting policies, comparability and other adjustments

New or amended accounting standards

IFRS 17

, Insurance Contracts

Effective from 1 January 2023, UBS has adopted IFRS 17,

Insurance Contracts

, which sets out the accounting

requirements for contractual rights and obligations that arise from insurance contracts issued and reinsurance contracts

held. The adoption has had no material effect on the Group’s financial statements. 

Amendments to IAS 12

, Income Taxes

In May 2023, the IASB issued amendments to IAS 12,

Income Taxes

, in relation to top-up taxes on income under Global

Anti-Base Erosion Rules that is imposed under legislation that has been enacted or substantively enacted to implement

the Pillar Two model rules published by the Organisation for Economic Co-operation and Development.

Certain countries in which the Group operates had enacted such legislation by 31 December 2023, including Switzerland,

which introduced a tax with effect from 1 January 2024 that is expected to be a qualified domestic minimum top-up tax,

and other countries (including Germany, France and Italy) also introduced top-up taxes in respect of a non-domestic

group’s worldwide operations with effect from 1 January 2025. Moreover, it is expected that other countries will enact

such legislation in 2024.

The amendments to IAS 12 introduced an exception, whereby deferred tax assets and deferred tax liabilities should not

be recognized or disclosed in respect of top-up taxes, which has been applied for the purposes of these financial

statements. 

An assessment was performed of the Group’s potential exposure to top-up taxes under legislation that was enacted or

substantively enacted to implement the Pillar Two model rules by 31 December 2023, reflecting country-by-country

reporting and, also, the corporate tax expenses of Group entities for recent years and those expected in future years. This

assessment indicated that the Group’s profits in future years are expected to be almost entirely earned in countries with

corporate tax expenses that are at a tax rate of 15% or more and will not, therefore, be subject to top-up taxes.

Consequently, the Group is not expected to have a material annual exposure to top-up taxes for future years under this

legislation.