FASB Proposes Enhancements to Income Tax Disclosure Requirements

The FASB has issued a proposed Accounting Standards Update (ASU) Improvements to Income Tax Disclosures. The proposed ASU would establish new income tax disclosure requirements in addition to modifying or eliminating certain requirements. The purpose of the proposal is to improve the usefulness of income tax information for financial statement users while addressing investors’ requests for greater transparency (particularly in jurisdictional information) regarding the rate reconciliation and income taxes paid.

Comments on the proposed ASU are due by May 30, 2023. For more information, see the press release on the FASB’s Web site.