PROJECT UPDATE

Targeted Improvements to Income Tax Disclosures

Last updated on May 23, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Sections updated on the date above are indicated with an asterisk *)

 

Objective:

The objective of the Targeted Improvements to Income Tax Disclosures project (formerly the Disclosure Framework: Disclosure Review—Income Taxes project) is to improve the transparency and decision usefulness of income tax disclosures.
 

Background:

In March 2022, the Board discussed recent feedback received, including feedback on the June 2021 Invitation to Comment, Agenda Consultation and agreed that the purpose of this project is to better meet the information needs of financial statement users in making capital allocation decisions, through incremental and achievable improvements to income tax disclosures. As a result, the Board revised the project objective to improve the transparency and decision usefulness of income tax disclosures and revised the project scope to primarily focus on income taxes paid and the rate reconciliation table.

In March 2014, the former project of Disclosure Framework: Disclosure Review—Income Taxes was added to the agenda as one of the Disclosure Framework (FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 8, Notes to the Financial Statement) Topics to analyze. Under the former project, two proposed Updates were issued.

Exposure Draft:

On July 26, 2016, the Board issued a proposed Accounting Standards Update, Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes. The due date for comment letters was September 30, 2016. 
 

Comment Letters:

 

Revised Exposure Draft:

On March 25, 2019, the Board issued a revised proposed Accounting Standards Update, Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes. The due date for comment letters was May 31, 2019. 
  • Download the March 25, 2019 revised proposed Accounting Standards Update, Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes.
 

Comment Letters:


The following media releases and educational materials are associated with the two proposed Updates issued under the former project, Disclosure Framework: Disclosure Review—Income Taxes.

Decisions Reached at Last Meeting (May 11, 2022):

The Board discussed the potential disclosure improvements to income taxes paid and the rate reconciliation. The Board directed the staff to further explore, through outreach and research, approaches to (1) disaggregate income taxes paid by jurisdictions and (2) require disclosure of individual reconciling items in the rate reconciliation on the basis of a quantitative threshold and specific categories of reconciling items, such as the foreign tax rate differential by jurisdictions. No decisions were made.

Tentative Board Decisions Reached to Date (as of May 11, 2022):

A summary of decisions reached to date can be found here.

Previous Tentative Board Decisions Prior to March 23, 2022:

A summary of decisions reached prior to March 23, 2022 can be found here.

The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.
 
The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.
 
May 11, 2022* Board Meeting—Targeted Improvements to Income Tax Disclosures
March 23, 2022 Board Meeting—Targeted Improvements to Income Tax Disclosures
February 12, 2020 Board Meeting—Disclosure Review
February 27, 2019 Board Meeting—Disclosure Review
January 23, 2019 Board Meeting—Disclosure Review
November 14, 2018 Board Meeting—Disclosure Review
January 25, 2017 Board Meeting—Disclosure Review
June 8, 2016 Board Meeting—Disclosure Review
March 23, 2016 Board Meeting—Disclosure Review
October 21, 2015 Board Meeting—Disclosure Review
August 26, 2015 Board Meeting—Disclosure Review

The staff will perform outreach and research to further explore potential disclosure improvements to income taxes paid and the rate reconciliation.

Lucy Cheng
Project Manager
lcheng@fasb.org

Jenifer Wyss
Supervising Project Manager
jjwyss@fasb.org

Lea Rocco
Postgraduate Technical Assistant
lrocco@fasb.org

Hannah Grosel
Postgraduate Technical Assistant
hgrosel@fasb.org

The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
 

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