FASB Proposes Simplifications to Accounting for Income Taxes

The FASB has issued a proposed ASU, Simplifying the Accounting for Income Taxes.

The proposal, which is part of the Board’s simplification initiative, is aimed at reducing the complexity and costs of income tax accounting. Specifically, the proposed ASU would (1) remove certain exceptions to the general principles in ASC 740 and (2) simplify certain aspects of income-tax-related GAAP for financial statement preparers. The proposal would not create new accounting requirements in ASC 740.

Comments on the proposed ASU are due by June 28, 2019. For more information, see Deloitte's related Heads Up newsletter as well as the press release and proposed ASU on the FASB’s Web site.