FASB Proposes Simplifying Accounting for Income Taxes

摘要

The costs and complexity of accounting for income taxes would be reduced under a recent FASB proposal by removing specific exceptions to the principles in FASB ASC 740, Income Taxes, under GAAP. This proposal would free businesses from determining whether the following situations apply in a certain period: 1. The exception to the incremental approach for intra-period tax allocation caused by a loss from continuing operations as well as income or gain from other items; 2. The exceptions caused by changes in foreign investments that cause differences in accounting for basis; 3. The exception that arises in interim period income tax accounting when year-to-date losses exceed anticipated losses.