KPMG reports on ASU 2019-12, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group.
Effective date | Public entities | All other entities |
Annual periods – Fiscal years beginning after |
Dec. 15, 2020 |
Dec. 15, 2021 |
Interim periods – In fiscal years beginning after |
Dec. 15, 2020 |
Dec. 15, 2022 |
Early adoption allowed in fiscal years beginning after | Yes, in periods for which financial statements have not been issued (or made available for issuance). An entity that elects early adoption in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. An entity must adopt all the amendments at the same time. |
The ASU introduces the following new guidance:
The ASU changes the following current guidance:
KPMG's Handbook: Accounting for income taxes
Receive timely updates on accounting and financial reporting topics from KPMG.
Receive timely updates on accounting and financial reporting topics from KPMG.