The Financial Accounting Standards Board (“FASB”) is taking a wait-and-see approach before finalizing its income tax disclosure guidance. An FASB spokesperson said the board wants to await the outcome of Congress and the Trump administration’s income tax reform legislation prior to approving Proposed Accounting Standards Update No. 2016-270, Income Taxes (Topic 740): Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes. The move is to ensure the FASB’s proposed amendments to income tax disclosures stay relevant.
The FASB also plans to hold off on making additional changes to the guidance under Topic 740, Income Taxes. The FASB spokesperson said board will research whether any new legislation would require amendments to its existing guidance on income taxes.