Accounting for Income Taxes: 2014 Year-end Hot Topics

January 2015
  • Print-friendly version
Accounting for Income Taxes: 2014 Year-end Hot Topics

At a glance

Accounting for income taxes has seen legislative and regulatory changes in the United States and abroad in 2014. These developments, combined with an environment of political and economic uncertainty, have added to the existing challenges in accounting for income taxes.

2014 brought about multiple developments regarding accounting for income taxes

Are you keeping up?

[Click the circles below to explore the top five developments]

Tax accounting reminders Standard setting activity US domestic law Key international law changes SEC comment letter trends
 
 

Tax accounting reminders

Calendar year 2014 has seen considerable activity in the legislative and regulatory landscapes both in the United States and abroad. These developments, combined with an environment of political and economic uncertainty, have added to the existing challenges in accounting for income taxes.

 

SEC comment letter trends

Calendar year 2014 continued to see a significant number of tax-related comment letters issued by the staff of the Securities and Exchange Commission (SEC). Of the comment letters released to the public between January 1, 2014 and September 30, 2014, almost 500 of the comments related to tax matters.

 

Standard setting

Throughout 2014, the Financial Accounting Standards Board (FASB) continued to take steps to clarify or amend existing accounting guidance. In addition, the FASB introduced several income tax accounting topics as part of its initiative to reduce complexity in accounting standards.

 

US domestic law

US GAAP requires filers to measure current and deferred income taxes based upon the laws enacted as of the relevant reporting period. Calendar year 2014 saw changes to both US federal and state tax law including the Tax Increase Prevention Act of 2014.

 

Key international tax law changes

The global tax environment continues to evolve as companies are faced with a rapidly-changing business landscape, increased stakeholder scrutiny, and a heightened enforcement environment. Trends in responsibility and integrated reporting, as well as the use of non-GAAP measures have also gained momentum. US GAAP requires filers to measure current and deferred income taxes based upon the laws enacted as of the relevant reporting period. Calendar year 2014 saw significant tax law changes in many jurisdictions worldwide.