The Financial Accounting Standards Board (“FASB”) has issued a proposal that would replace Topic 995, U.S. Steamship Entities. The Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 995, US Steamship Entities: Elimination of Topic 995, was created because the guidance in Topic 995 has become irrelevant.
FASB Statement No. 109, Accounting for Income Taxes, allows steamship entities that made statutory reserve deposits prior to December 15, 1992, to voluntarily disclose their deferred taxes. The board believes steamship entities with statutory reserve funds should report all deferred taxes according to Topic 740, Income Taxes. In addition, the FASB deems the guidance under Topic 995 on transferring to the requirements under Topic 740 is irrelevant since statutory funds deposited on or prior to December 15, 1992, have exceeded the 25-year limit.
The FASB is accepting feedback on the proposal through Monday, August 28.