Tax Accounting for Stock Awards Simplification May Increase Earnings Volatility

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What’s New The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2016-09, which amends the Accounting Standards Codification Topic (ASC) 718, Compensation – Stock Compensation. In addition to seven other tax and non-tax related amendments, this ASU significantly modifies the financial statement impact of stock award tax deductions. Summary Below is a… Read more »

Disclosure Review: Income Taxes

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What’s New The Financial Accounting Standards Board (FASB or Board) has begun initial deliberations to increase income tax disclosures related to changes in tax laws, deferred taxes, income taxes paid, valuation allowances, tax rate reconciliation, and tax carryforwards. These deliberations were made as part of the FASBs overall Disclosure Framework project. Potential Impact The objective… Read more »

OECD issues final guidelines

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Potential Impact In 2013, the OECD undertook the BEPS project to address the growing difficulty in applying current international tax rules due to the expansion of the digital economy. Specifically, the project was aimed at addressing aggressive tax planning techniques employed by multinational entities to take advantage of gaps in the interaction of different jurisdictions’… Read more »

All Deferred Tax Assets and Liabilities to be Classified as Noncurrent

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The Crux On October 5, the Financial Accounting Standards Board voted to finalize a requirement that all deferred income tax assets and liabilities be presented as noncurrent in an effort to simplify presentation of deferred income taxes. Under current rules, companies must separate deferred income tax assets and liabilities into current and noncurrent amounts. For… Read more »