FAF to begin post-implementation review of Statement 109

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04 Feb 2013

The US Financial Accounting Foundation (FAF) will conduct its next post-implementation review (PIR) on Financial Accounting Standards Board (FASB) Statement No. 109, Accounting for Income Taxes (FAS 109) (codified in Accounting Standards Codification 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.

FAS 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. So far, 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 FAS 109 PIR are available on the FAF website.

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