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FASB proposes income tax guidance related to new tax reform law

  • FASB document Image

Jan 18, 2018

The FASB has issued a proposed Accounting Standards Update (ASU), “Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income.”

The proposed ASU would amend ASC 220, Income Statement — Reporting Comprehensive Income, to require “financial statement preparers to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings 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 of 2017 (or portion thereof) is recorded.” The reclassification amount “would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate.”

Comments on the proposed ASU are due by February 2, 2018. For more information, see the press release and proposed ASU on the FASB’s Web site.

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