Progress Is Being Made: Continued Focus on Addressing Implementation Matters
Jun 07, 2018
On June 7, 2018, the Securities and Exchange Commission (SEC) released a speech by SEC’s Deputy Chief Accountant, Sagar Teotia, where he reminded companies that the clock is ticking on finalizing disclosures relating to the impact of tax reform. Staff Accounting Bulletin No. 118 was issued in December 2017.
SAB 118 permits companies to assess, record provisional amounts and ultimately finalize disclosure of the financial impact of tax reform over a “measurement period” of up to one year from the date of the legislation’s enactment. However, Mr. Teotia clarifies that SAB 118 does not allow companies to defer reporting of tax reform’s impact.
The measurement period ends when an entity has completed the process necessary to finalize its assessment of tax reform’s impact – and for certain income tax effects, that could be well before the one year mark.
Review the full speech on the SEC's website.
