Heads Up on FASB's income tax guidance
04 Sep 2009
Deloitte United States has published a Heads Up Newsletter titled Deferred No Longer: FASB Provides Guidance on Accounting for Uncertainty in Income Taxes and Eliminates Certain Disclosure Requirements for All Nonpublic Entities.
When FASB originally adopted its guidance on uncertainty in income taxes (Accounting Standards Codification (ASC) Section 740), it had deferred that guidance for certain nonpublic entities until the first annual financial statements for financial years beginning after 15 December 2008. That deferral was intended to give the FASB time to develop guidance that it has now published in the form of Accounting Standards Update (ASU) 2009-06. Therefore, nonpublic entities are required to apply all of the recognition and measurement principles of ASC 740. However, the FASB has provided those entities with relief from some of the income tax disclosure requirements. The IASB has proposed similar principles for recognising and measuring uncertainty in income taxes in its March 2009 Exposure Draft Income Tax. The IFRS for SMEs contains similar disclosure relief.
Click for Heads Up Newsletter: FASB Provides Guidance on Accounting for Uncertainty in Income Taxes and Eliminates Certain Disclosure Requirements for All Nonpublic Entities.
