FASB Issues Income Tax Disclosure Standard

On December 14th, the Financial Accounting Standards Board (FASB) released Accounting Standards Update (ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which seeks to enhance income tax disclosures in financial statements. While several revisions were made to the originally proposed ASU based on feedback provided from A&M and other stakeholders, the final provisions in the ASU were largely as expected.

As discussed in our previous publications on this topic , the ASU provides greater transparency into entities' global operations and provides users with crucial information that help investors:

1. Understand an entity's exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities;