Academic journal article Journal of Accountancy

FASB Proposed Two Standards Changes That Are Designed to Reduce Complexity in Accounting for Income Taxes

Academic journal article Journal of Accountancy

FASB Proposed Two Standards Changes That Are Designed to Reduce Complexity in Accounting for Income Taxes

Article excerpt

* FASB proposed two standards changes that are designed to reduce complexity in accounting for income taxes. The proposal is available at tinyurl.com/pff24st.

For public business entities, the proposed changes would take effect for annual periods, including interim periods within those annual periods, beginning after Dec. 15, 2016. Early adoption would not be permitted for public business entities.

For all other entities, the proposed amendments would take effect for annual periods beginning after Dec. 15, 2017, and interim periods in annual periods beginning after Dec. 15, 2018. Early adoption would be permitted, but not before the effective date for public business entities.

FASB is seeking comments on both items by May 29. Comments can be made at FASB's website at tinyurl.com/oxs7tm8.

The first item the board is proposing is elimination of the exception in ASC Subtopic 740-10, Recognition, that prohibits recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party.

This proposal would require that an entity recognize the current and deferred income tax consequences of an intra-entity asset transfer when the transfer occurs. The proposal would align GAAP with IFRS guidance on the recognition of income tax consequences of intra-entity asset transfers.

Entities would be required to apply the proposed amendments on a modified retrospective basis. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.