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FASB simplifies accounting for intra-entity asset transfers

  • FASB document Image

Oct 24, 2016

The FASB has issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.”

The ASU removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The ASU, which is part of the Board’s simplification initiative, is intended to reduce the complexity of U.S. GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property.

For more in­for­ma­tion, see Deloitte's related Heads Up newsletter as well as the final ASU on the FASB’s Web site.

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