FASB addresses stranded income tax effects of new tax law

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Feb 14, 2018

On February 14, 2018, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

Under the new FASB rules, financial statement preparers are provided an option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

Review the press release and ASU on the FASB's website.

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