Tentative Board Decisions
Tentative Board decisions are provided for those interested in
following the Board's deliberations. All of the reported decisions are
tentative and may be changed at future Board meetings.
October 21, 2015 FASB Board Meeting [Revised 10/26/15]
Disclosure Framework: Disclosure Review—Income Taxes. The Board discussed income tax disclosures and decided that entities would be required to disclose the following:
The Board also decided that all entities should disclose the rate
reconciliation currently required in GAAP only for public companies.
Furthermore, the current requirement would be modified to include:
- That a change in tax law has been enacted, and it is probable
that the change will affect the reporting entity in a future period
- If deferred taxes are not presented as a separate line item in
the balance sheet, the line item(s) in which the amount is presented
- Domestic income taxes paid and foreign income taxes paid
- An explanation of the nature and amounts of the valuation allowance recorded and released during the reporting period.
The Board decided to revise the carryforward disclosure requirements to require that all entities disclose:
- If an individual reconciling item amounts to more than 5 percent
of the amount computed by multiplying the income before tax by the
applicable statutory federal income tax rate, disclose that amount
- A qualitative description of those items that have caused a significant movement in the rate year over year.
The Board directed the staff to perform further outreach on all of the potential changes to income tax disclosures.
- The amounts and expiration dates of the carryforwards recorded on the tax return (not tax effected)
- The amounts and expiration dates of the carryforwards that will give rise to a deferred tax asset (tax effected)
- The total amount of the unrecognized tax benefit that offsets the tax-effected carryforwards.
Disclosure Framework: Disclosure Review—Fair Value Measurement.
The Board directed the staff to begin drafting the amendments to
disclosures related to fair value measurement. After it reviews the
draft, the Board plans to meet to discuss any final issues.