Pursuant to its ongoing Disclosure Framework project, the Financial Accounting Standards Board (FASB) will issue an Exposure Draft this summer (2016) of a proposed Accounting Standards Update (ASU) intended to improve income tax disclosure requirements under ASC 740, Income taxes. The objective of the FASB’s Disclosure Framework project is to improve the effectiveness of disclosures in the notes to financial statements by clearly communicating the information that is most important to users. Income Tax disclosures included in ASC 740-10-50 is one of four topics the FASB is currently evaluating for disclosure improvements.
At a meeting held June 8th, the FASB reviewed and finalized its prior tentative decisions on income tax disclosures reached during five previous meetings on the topic. Following the most recent meeting, the Board directed its staff to draft an Exposure Draft of an ASU containing all the final decisions for a comment period of 60 days, or ending on September 30th, 2016, whichever is longer.
Click below to download details on the proposed decisions to be included in the exposure draft and how the impending changes might affect your company.