AccountingLink

    Income taxes

    30 March 2017

    Quarterly tax developments - March 2017
    Our March 2017 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes certain enacted tax legislation, as well as regulatory developments, legislative proposals and other items, through 15 March 2017 to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    30 March 2017

    To the Point - Brexit withdrawal notification doesn’t trigger immediate tax accounting consequences
    The United Kingdom (UK) government’s formal notification of its intent to withdraw from the European Union (EU) raised the question of whether that action constituted a change in tax law for income tax accounting purposes. We believe that the withdrawal notification does not trigger immediate income tax accounting consequences. Companies should instead account for changes to their income tax accounts when a new tax law or treaty is enacted or the UK actually withdraws from the EU, whichever is earlier. Affected companies should disclose information about the status of the UK withdrawal efforts and the potential income tax effects of its eventual withdrawal.

    9 February 2017

    Technical Line - A closer look at the new guidance on accounting for tax consequences of intercompany transactions
    Our publication takes a closer look at how entities will be affected by ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. Companies will be required to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. The guidance is effective for public business entities in annual periods beginning after 15 December 2017, and for all other entities in annual periods beginning after 15 December 2018. Early adoption is permitted as of the beginning of an annual period, meaning the first quarter of 2017 is the only opportunity for calendar-year public business entities to early adopt.

    5 January 2017

    Financial Reporting Developments - Income taxes
    We have updated our FRD publication primarily in response to recent standard setting that affects the balance sheet presentation of deferred taxes and the tax implications of share-based payment accounting, among other things. Refer to Appendix D of the publication for a summary of the updates.

    21 December 2016

    Quarterly tax developments - December 2016
    Our December 2016 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted tax legislation, as well as regulatory developments, legislative proposals and other items, through 15 December 2016 to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    27 October 2016

    To the Point - FASB limits deferral of income tax effects of intercompany transfers to those involving inventory
    The FASB issued final guidance that will require companies to account for the income tax effects of intercompany transfers of assets other than inventory (e.g., intangible assets) when the transfer occurs. The guidance is effective for public business entities in annual periods beginning after 15 December 2017, and for all other entities in annual periods beginning after 15 December 2018. Early adoption is permitted as of the beginning of an annual period (i.e., early adoption is permitted only in the first interim period).

    6 October 2016

    To the Point - Companies should consider possible changes to the tax treatment of certain related party debt instruments
    Companies (foreign or domestic) that issue debt to related parties (including intercompany debt) may be affected by regulations proposed to change the US federal income tax treatment of this type of debt. Companies should begin identifying arrangements that could be affected. Under the proposal, certain related party debt could be treated as equity for US federal income tax purposes. It is not clear whether the regulations will be issued in their proposed form or whether they will be changed significantly. The issues are complex, and the regulations could become final soon.

    30 September 2016

    Comment Letter - FASB proposed changes to disclosure requirement for income taxes
    In our comment letter, we supported the FASB’s effort to improve the effectiveness of income tax disclosures, particularly incorporating disclosures required by the Securities and Exchange Commission into US GAAP. However, we asked the FASB to provide more details about the input received from users on expanding the disclosure requirements as we believe that would help other constituents understand how the proposal meets user needs. In addition, we expressed concerns about the proposed requirements to disclose agreements with a government and the future effects of tax law changes, and we recommended that the Board clarify certain aspects of the proposed requirements to promote consistency and make the disclosures as useful as possible.

    28 September 2016

    Quarterly tax developments - September 2016
    Our September 2016 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, as well as regulatory developments, legislative proposals and other items, through 9 September 2016 (except as noted) to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    29 June 2016

    Quarterly tax developments - June 2016
    Our June 2016 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, as well as regulatory developments, legislative proposals and other items, through 10 June 2016 (except as noted) to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    20 June 2016

    To the Point - FASB decides to issue final income tax guidance on intercompany transactions
    The FASB decided that the exception to income tax accounting that requires companies to defer the income tax effects of certain intercompany transactions would apply only to intercompany inventory transactions. That is, the exception would no longer apply to intercompany sales and transfers of other assets (e.g., intangible assets). The Board then directed the staff to draft a final standard to make the change.

    31 March 2016

    To the Point - FASB moves closer to issuing a proposal on income tax disclosures
    The FASB revisited the tentative decisions it reached at meetings last year on income tax disclosures related to foreign earnings and indefinite reinvestment assertions, unrecognized tax benefits and other income tax topics. Based on outreach the Board and its staff performed, the FASB tentatively decided to add certain disclosure requirements and reverse several of its earlier decisions. The FASB plans to issue a proposal seeking public comment on changes to the income tax disclosure guidance after its staff completes some additional outreach.

    31 March 2016

    To the Point - Japan tax reform law has income tax accounting implications
    Japan enacted a tax reform law on 29 March 2016 that will reduce Japan’s national corporate income tax and local enterprise tax rates and make other changes to the tax law. Entities that are subject to these taxes and report under US GAAP will need to recognize the effects of income tax rate changes on deferred tax balances in the period in which the legislation was enacted.

    30 March 2016

    Quarterly tax developments - March 2016
    Our March 2016 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, as well as regulatory developments, legislative proposals and other items, through 15 March 2016 (except as noted) to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    22 December 2015

    Quarterly tax developments - December 2015
    Our December 2015 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, as well as legislative proposals and other items, through 10 December 2015 (except as noted) to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    22 December 2015

    To the Point - Some ‘tax extenders’ are made permanent, others are extended
    The tax law that President Barack Obama signed on 18 December 2015 retroactively reinstates certain expired tax provisions known as tax extenders. The law made certain tax provisions permanent, extended others for five years and extended others for two years. The income tax accounting effect, including the retroactive effect, of a tax law change is accounted for in the period of enactment, which in this case is the fourth quarter of 2015 for a calendar-year company.

    24 November 2015

    To the Point - FASB issues final guidance to simplify one aspect of income tax accounting
    The FASB issued final guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. Because early adoption is permitted, companies can start applying this guidance in interim and annual financial statements that have not yet been issued.

    28 October 2015

    To the Point - FASB may require additional income tax disclosures
    The FASB tentatively decided to require additional income tax disclosures of changes in tax laws, taxes paid, valuation allowances, tax rate reconciliations, deferred taxes and tax carryforwards. The FASB made these decisions as part of its broader disclosure framework project.

    8 October 2015

    To the Point - FASB redeliberates its proposals to simplify income tax accounting
    The FASB redeliberated two proposals to simplify income tax accounting and directed its staff to perform additional work on the proposal to eliminate the current exception that requires companies to defer the income tax effects of certain intercompany transactions. The Board asked the staff to research the costs and benefits of retaining the current exception only for intercompany inventory transactions. The Board reaffirmed its decision in the second proposal to require companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts and directed its staff to draft a final standard.

    30 September 2015

    Quarterly tax developments - September 2015
    Our September 2015 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, legislative proposals and other items to consider as you prepare your income tax provision. We’ve also listed our tax and other publications that provide more detail on the topics we discuss. We have updated our September 2015 edition to include certain enacted tax law changes through 30 September 2015 for you to consider as you prepare your tax provision. The changes are included in Appendix B of the publication.

    27 August 2015

    To the Point - FASB may change income tax disclosure requirements related to unrecognized tax benefits
    The FASB tentatively decided to expand one income tax disclosure requirement related to unrecognized tax benefits and to eliminate another. The FASB made these decisions in its review of income tax disclosures, which is part of its disclosure framework project.

    1 July 2015

    Quarterly tax developments - June 2015
    Our June 2015 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, legislative proposals and other items to consider as you prepare your income tax provision. We’ve also listed our tax and other publications that provide more detail on the topics we discuss.

    29 May 2015

    Comment Letter - FASB proposal on balance sheet classification of deferred taxes
    In our comment letter, we supported the proposal to eliminate the requirement to classify deferred tax assets or liabilities or any related valuation allowance as current or noncurrent. We also believe the proposal would not significantly affect the quality of information provided to financial statement users.

    29 May 2015

    Comment Letter - FASB proposal on income tax accounting for intercompany sales or transfers
    In our comment letter, we supported the Board’s proposal to eliminate today’s requirement that companies defer the income tax effects of sales or transfers of assets among members of a consolidated group and instead require them to immediately recognize these effects in the income statement. Our support is based principally on the issues and errors we have seen related to the scope and application of today’s requirement, which is an exception to the income tax accounting guidance. However, we note that many preparers have dedicated considerable resources to establishing accounting policies, systems, processes and controls to address today’s accounting. We also acknowledge that the proposal would not eliminate complexity.

    15 April 2015

    To the Point - US GAAP income tax accounting considerations related to the new UK diverted profits tax
    The United Kingdom enacted legislation on 26 March 2015 that imposes a 25% tax on a company’s profits that are generated from economic activity in the UK but are determined to have avoided being taxed in the UK. The so-called diverted profits tax is effective 1 April 2015. Our publication discusses US GAAP income tax accounting considerations related to the new tax.

    31 March 2015

    Quarterly tax developments - March 2015
    Our March 2015 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, legislative proposals and other items to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    17 February 2015

    To the Point - FASB may add income tax disclosures related to foreign earnings
    The FASB tentatively decided to require additional income tax disclosures related to foreign earnings and indefinite reinvestment assertions. The FASB made these decisions in its review of income tax disclosures, which is part of its disclosure framework project.

    28 January 2015

    To the Point - FASB proposes simplifying income tax accounting
    The FASB issued two proposals to simplify income tax accounting. One proposal would require companies to immediately recognize income tax expense (or benefit) on intercompany transactions in their income statements rather than defer the income tax effects of certain intercompany transactions as they do today. The other proposal would require all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet.

    23 December 2014

    Quarterly tax developments - December 2014
    Our December 2014 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation as well as, legislative proposals and other items through 19 December 2014 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    22 December 2014

    To the Point - Tax extenders reinstated – but only for 2014
    The tax law that President Barack Obama signed on 19 December 2014 retroactively reinstates expired tax provisions known as tax extenders but only for 2014. They include the research and development tax credit, the active financing exception for financial services businesses, a host of renewable energy incentives and bonus depreciation. The income tax accounting effect, including any retroactive effect, of a tax law change is accounted for in the period of enactment.

    8 October 2014

    Quarterly tax developments - September 2014
    Our September 2014 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties, and other items through 30 September 2014 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    9 July 2014

    Quarterly tax developments - June 2014
    Our June 2014 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties, and other items through 30 June 2014 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    9 April 2014

    Quarterly tax developments - March 2014
    Our March 2014 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties, and other items through 31 March 2014 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    23 January 2014

    Tax Alert 2014-148: US GAAP income tax accounting considerations of the Mexican 2014 Tax Reform
    The final components of Mexico’s 2014 tax reform (Final Reform) were published in the Official Gazette on 11 December 2013, after having been signed by President Peña Nieto on 6 December 2013. The final step in enacting a tax law in Mexico is for the president to publish the law in the Official Gazette. Therefore, the enactment date of the Final Reform is 11 December 2013. The changes included in the Final Reform are generally effective for tax years beginning on or after 1 January 2014.

    9 January 2014

    Quarterly tax developments - December 2013
    Our December 2013 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties and other items through 31 December 2013 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    9 January 2014

    Technical Line - ‘Tax extenders’ have expired — once again
    Congress has once again allowed several tax provisions known as "tax extenders" to expire on 31 December 2013. They include the research and development tax credit, the active financing exception for financial services businesses, a host of renewable energy incentives and bonus depreciation. While these provisions may be reinstated as they have been in the past, tax legislation faces significant challenges in the current environment. It is important to remember that a reinstatement can be accounted for only in the period enactment. Our Technical Line tells you what you need to know.

    8 October 2013

    Quarterly tax developments - September 2013
    Our September 2013 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties and other items through 30 September 2013 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    17 July 2013

    Quarterly tax developments - June 2013
    Our June 2013 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties and other items through 30 June 2013 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss

    23 June 2010

    Hot Topic - Accounting for income taxes: a quarterly update
    The second quarter of calendar year 2010 saw a number of legislative and regulatory developments including several with income tax accounting implications. Our Hot Topic includes a summary of certain developments and trends many of which have potential income tax accounting implications.

    18 January 2008

    Comment Letter - Proposed FASB Staff Position No. FIN 48-b-effective date of FIN 48 for Nonpublic Enterprises
    This comment letter provides our views about the effective date of FIN 48 for nonpublic companies.