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FAF to begin post-implementation review of Statement 109

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Feb 04, 2013

The Financial Accounting Foundation (FAF) will conduct its next post-implementation review (PIR) on FASB Statement No. 109, "Accounting for Income Taxes" (codified in the FASB Accounting Standards Codification as Topic 740, "Income Taxes"). The FAF will use the information from the PIR to evaluate the effectiveness of the standard-setting process of the FASB.

Statement 109 was chosen because it met several PIR criteria. As the FAF President and Chief Executive Officer Teresa S. Polley states:

[FAS 109] represented a significant change in the accounting for income taxes and affected a wide range of organizations. [S]takeholders frequently note that income tax accounting is a complex topic and over the years the FASB’s advisory groups have mentioned that it is an area that could be improved—both the accounting guidance and the information disclosed to investors.

The PIR process is intended to be independent of the FASB's standard-setting process. To date, the FAF PIR team has completed the reviews of Statement 131 and Interpretation 48; it is currently conducting a PIR on Statement 141.

The press release and registration information on the Statement 109 PIR are available on the FAF's Web site.

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