Section 987 regulations, which were issued in December 2016, can significantly change how a company measures taxable income when a foreign branch has a functional currency different from its owner’s functional currency.
On October 2, 2017, a US Treasury Report and IRS Notice announced that the Treasury plans to:
We believe that the IRS Notice effectively enacts the postponement (i.e. the enactment date for the change is October 2, 2017).
Companies will need to assess the effect of this change in tax law on the recognition and measurement of deferred tax assets or liabilities in the period that includes October 2, 2017.
Handbook: Accounting for income taxes