Defining Issues | December 2017
FASB eliminates income tax accounting exception for steamship entities
KPMG reports on the FASB’s latest Codification improvements. The ASU eliminates outdated special income tax accounting guidance for steamship entities.
Applicability
- Steamship entities
Effective date:
Annual periods – Fiscal years beginning after
Interim periods – In fiscal years beginning after
Early adoption allowed?
All entities
Dec. 15, 2018
Dec. 15, 2018
Yes
Key impacts
- This ASU eliminates ASC 995, U.S. Steamship Entities, which only includes an exemption to the recognition of deferred taxes on certain statutory reserve deposits that were, but are no longer, tax deferred.
- The changes are part of an ongoing FASB project to make non-substantive improvements that are not expected to have a significant effect on accounting practice or create a significant administrative cost for most entities.