Proposed Changes to The Income Tax Disclosure

The Financial Accounting Standards Board (FASB) proposed to change the income tax disclosure requirements.  The amendments in this proposed update (see the link below) would modify the current disclosure requirements for income taxes for all entities required to account for income taxes under Topic 740.

The following additional proposed disclosures would be required for all entities:

1. Income (or loss) from continuing operations before income tax expense (or benefit) and before intra-entity eliminations disaggregated between domestic and foreign;
2. Income tax expense (or benefit) from continuing operations disaggregated between federal, state, and foreign; and
3. Income taxes paid disaggregated between federal, state, and foreign.

The following proposed disclosures would be required for public business entities:

1. The line items in the statement of financial position in which the unrecognized tax benefits are presented and the related amounts of such unrecognized tax benefits;
2. The amount and explanation of the valuation allowance recognized and/or released during the reporting period; and
3. The total amount of unrecognized tax benefits that offsets the deferred tax assets and carryforwards.

The amendments in this proposed update would be applied prospectively.  Comments must be submitted to FASB by May 31, 2019.

https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176172382198&acceptedDisclaimer=true