FASB to Review Backwards Tracing Related to Tax Reform
The Financial Accounting Standards Board’s (“FASB”) research team plans to review how the tax code changes stemming from the Tax Cuts and Jobs Act (“TCJA”) will impact backwards tracing, which is a practice U.S. GAAP currently prohibits. Backwards tracing is a practice in which the impact of a change in a deferred tax credit or charge is included in the same line item wherein the deferred taxes were initially recorded. According to FASB staff member Jason Bond, the board wants to review the costs of backwards tracing and consider alternatives to determine whether the benefits outweigh the costs. Bond remarked. Read More.
SEC to Help Companies Disclose Tax Reform Effects
At a recent SEC Speaks event in Washington, D.C., Securities and Exchange Commission (“SEC”) chief accountant Wesley Bricker told attendees that the commission intends to help public companies with disclosures on their periodic filings related to the impact of the Tax Cuts and Jobs Act (“TCJA”). In his remarks, Bricker referenced Staff Accounting Bulletin No. 118, (Topic 5.EE), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which was issued in December 2017. The bulletin covers the judgments and assumptions that a company’s management must make when including the effects of tax reform into financial statements. It also. Read More.
FASB Finalizes Standard Related to Tax Reform
The Financial Accounting Standards Board (“FASB”) has issued an Accounting Standards Update (“ASU”) concerning certain stranded income tax effects in accumulated other comprehensive income caused by the Tax Cuts and Jobs Act. ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, gives financial statement preparers the option to reclassify stranded tax effects in accumulated other comprehensive income to retained earnings in every period wherein the impact of the new corporate income tax rate in the new tax law (or portion thereof) is recognized. As a result of the new guidance,. Read More.
Topics: Accounting Standards Update "ASU", Accumulated Other Comprehensive Income, Comprehensive Income (Topic 220), FASB, Financial Accounting Standards Board "FASB", Stranded Income Tax Effects, Tax Cuts and Jobs Act, Tax Reform
FASB Receives Support for Proposed Tax Reform Guidance
Numerous banking institutions, insurers, and financial trade organizations support the Financial Accounting Standards Board’s (“FASB”) proposed response to the Tax Cuts and Jobs Act. In comment letters on Proposed Accounting Standards Update (“ASU”) No. 2018-210, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, groups like the American Bankers Association urged the FASB to approve its proposed amendment. Proposed ASU No. 2018-210 aims to reduce the accounting effects of complying with the new tax law and simplify financial statements for investors. The FASB released the proposal after banks and insurance companies raised concerns over certain requirements introduced by the Tax Cuts and Jobs Act. Under. Read More.
Topics: corporate income tax rate, Deferred Taxes, FASB, Financial Accounting Standards Board "FASB", Other Comprehensive Income, Proposed Accounting Standards Update, Tax Cuts and Jobs Act, Tax Reform
Phil Shechter Discusses Tax Reform with South Florida Legal Guide
In a recent interview with South Florida Legal Guide, Cherry Bekaert’s (“the Firm”) Phil Shechter, CPA, discusses the impact of the Tax Cuts and Jobs Act on both individual and business taxpayers. Shechter, the Firm’s National Leader of Litigation Support Services, provides general information on tax reform affecting individual tax rates, mortgage interest deductions, small businesses and pass-through entities. Read Phil’s full interview on the South Florida Legal Guide website. Additionally, if you seek guidance on forensic and litigation matters, Cherry Bekaert’s Forensic & Litigation Advisory Services team is ready to help.
Government Could Shut Down Again Thursday
With the current stopgap spending bill expiring in two days, Congress is scrambling to avoid another government shutdown. The House will vote today on another short-term continuing resolution that would fund the government until Thursday, March 22. Lawmakers continue to negotiate on a budget for the 2018 fiscal year, but disagreements exist regarding proposed increases in defense, non-defense, and infrastructure spending. Other budget disputes involve funding for Dreamers/Deferred Action for Childhood Arrivals (DACA), hurricane and wildfire emergencies, and community health centers. No agreements have been reached on such matters. Meanwhile, the White House wants anomalies (i.e., additional funding) included in. Read More.