US regulatory updates
Perhaps the most significant complexity that will continue to affect financial reporting is how to address uncertainties that have emerged regarding the application of US tax reform. We continue to see questions regarding how to appropriately account for regulations – final, temporary, or proposed – often in the context of how to consider the information in the assessment of uncertain tax positions.
Throughout the course of 2019 major global tax shifts occurred with impacts on financial reporting including:
- Exit taxation
- Swiss tax reform
- Mexican tax
- Indian tax reform
- Taxation of the digital economy
Financial statement developments
This year the FASB released the final ASU, which eliminates certain exceptions to the general principles in ASC 740 and makes amendments to other areas with a focus on simplification and consistent application of GAAP. The FASB also issued a proposed disclosure framework for income taxes.