FASB re-proposes changes to income tax disclosures

KPMG reports on the proposed ASU to improve income tax disclosures, which is part of the FASB’s disclosure framework project. The FASB first proposed changes in July 2016, but revised several proposed disclosures based on constituent feedback.

Applicability

Proposed ASU

• All companies that are subject to income taxes

Relevant dates

• March 25, 2019 – FASB issued proposed ASU
• May 31, 2019 – Comments due on proposed ASU

Key impacts

The proposed changes would: 

• Require disaggregated disclosures about federal, state and foreign income taxes 
• Modify disclosures about unrecognized tax benefits
• Remove certain disclosures about undistributed earnings of subsidiaries and corporate joint ventures

Report contents

• Testing the disclosure framework
• Proposed new disclosures
• Modifications to existing disclosures
• Removed disclosures
• Looking ahead