FASB Discusses Income Tax Proposal

At its August 30, 2023, meeting, the FASB discussed feedback on its proposed Accounting Standards Update (ASU) Improvements to Income Tax Disclosures. Among other things, the Board affirmed its decisions to require disclosures about (1) the tabular rate reconciliation, (2) income taxes paid, and (3) various other items (e.g., replacing the term “public entity” with “public business entity”). The Board also made tentative decisions regarding the transition and effective date of the amendments and concluded that the standard’s benefits are expected to outweigh its costs.

The Board has directed its staff to draft a final ASU on this topic for a vote by written ballot. For more information, see the tentative Board decisions on the FASB’s Web site.