FASB Q&A Issued for Staff Accounting Bulletin on Tax Reform
The Financial Accounting Standards Board (“FASB”) has published a Staff Q&A regarding whether private entities and nonprofits can apply Staff Accounting Bulletin (“SAB”) No. 118 (Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act). In its Staff Q&A, the FASB says it does not oppose private entities and nonprofits applying the Securities and Exchange Commission’s interpretive guidance for tax reform. The document also notes that such companies and organizations that employ SAB No. 118 would comply with GAAP.
SAB No. 118 was issued in response to the Tax Cuts and Jobs Act. The guidance allows an entity, in certain situations, to include in its financial statements a reasonable estimate of the impact of its accounting for certain income tax effects following consideration of the new tax law.
FASB staff members consulted with stakeholders and Private Company Council members in establishing its opinion under the Staff Q&A.
Topics: FASB, FASB Staff Q&A, Financial Accounting Standards Board "FASB", Nonprofits, SEC Interpretive Guidance, Securities and Exchange Commission "SEC", Staff Accounting Bulletin "SAB", Tax Cuts and Jobs Act, Tax Reform