On March 25, 2019, the FASB issued a proposed Accounting Standards Update (Revised)—Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes (the proposed ASU). This is the second proposed ASU released on this topic, and is part of the FASB’s overall disclosure framework project. It reflects all of the decisions made since the initial proposal was exposed in July 2016 (previous Exposure Draft).
The FASB is requesting comments on the proposed ASU by Friday, May 31, 2019. The application of the ASU would be on a prospective basis with an effective date to be determined after the FASB considers feedback from stakeholders.
Virtually all companies that apply US Generally Accepted Accounting Principles for financial reporting purposes will be impacted by the proposed ASU. The new disclosure requirements will require further disaggregation of the data disclosed for most companies.
Companies should consider providing feedback to the FASB during the comment period, which ends on May 31, 2019, and should continue to monitor developments as the FASB receives feedback from stakeholders. Companies should also consider any necessary updates to systems, processes, and controls that would be required if the proposed ASU is finalized with the current provisions.
US Tax Accounting Market Leader, PwC US