{"id":12544,"date":"2023-10-12T18:02:32","date_gmt":"2023-10-12T18:02:32","guid":{"rendered":"https:\/\/taxops.com\/?p=12544"},"modified":"2023-10-12T18:03:02","modified_gmt":"2023-10-12T18:03:02","slug":"fasb-approves-new-asc-740-disclosures-for-income-tax-reporting","status":"publish","type":"post","link":"https:\/\/taxops.com\/fasb-approves-new-asc-740-disclosures-for-income-tax-reporting\/","title":{"rendered":"FASB approves new ASC 740 disclosures for income tax reporting"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/10\/FASB-reporting-changes-1024x576.png\" alt=\"\" class=\"wp-image-12550 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/10\/FASB-reporting-changes-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/10\/FASB-reporting-changes-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/10\/FASB-reporting-changes-1024x576.png\" alt=\"\" class=\"wp-image-12550 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/10\/FASB-reporting-changes-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/10\/FASB-reporting-changes-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>The Financial Accounting Standards Board (FASB) green lit an income tax disclosure proposal that will bring more transparency to the taxes paid by companies. Starting as early as 2025, annual reports will now include a breakdown of year-to-date income tax payments, net refunds, and specify whether these were made to state, federal, or foreign taxing authorities.<\/em> <\/p>\n\n\n\n<p class=\"wp-embed-aspect-16-9 wp-has-aspect-ratio wp-block-paragraph\"><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/taxops.com\/lauren-staub-2\/\" target=\"_blank\" rel=\"noopener\" title=\"Lauren Staub\">Lauren Staub<\/a> and <a href=\"https:\/\/taxops.com\/ramona-gross\/\" target=\"_blank\" rel=\"noopener\" title=\"Ramona Gross\">Ramona Gross<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Financial Accounting Standards Board (FASB) approved an income tax disclosure proposal that will require companies to tell the public more about taxes paid starting as early as 2025. Long debated, the Board approved new disclosures requiring:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual reports to include year-to-date income tax paid, net refunds received, to state, federal, and foreign taxing authorities&nbsp;<\/li>\n\n\n\n<li>Companies that pay at least 5% of tax payments to a country or jurisdiction must list the country or state and disclose the amount of tax paid&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. companies currently are required to provide financial statements that include cash taxes paid in total but are not required to list country or state jurisdiction, according to <a href=\"https:\/\/news.bloomberglaw.com\/daily-labor-report\/us-companies-to-divulge-tax-details-in-new-accounting-mandate\" target=\"_blank\" rel=\"noreferrer noopener\">Bloomberg<\/a>. These disclosure additions will be published by year-end and are intended to itemize some taxes paid that which was only provided as a lump sum in the past.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Effective dates<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Public companies will be required to adjust their companies\u2019 10-K annual reports in 2025, and interim reporting starts in the first quarter of 2026. Private companies will start to comply with their annual reports in 2026 and interim reports in 2027. Reach out to your TaxOps advisor with any questions or concerns regarding the new disclosures and the impact on ASC 740 compliance.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Takeaway<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These new requirements will add another layer of transparency for users of financial statements, giving them insight into the impact of cash taxes paid and received, by jurisdiction, during the reporting period. Generally, this information is already gathered for use in the income tax provision calculation, so summarizing the additional detail in the financial statements shouldn\u2019t too much of a headache for companies. Reach out to your TaxOps Advisor for additional guidance.\u00a0<\/p>\n\n\n\n<div style=\"height:54px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Let&#8217;s Talk Tax<\/h3>\n\n\n\n<div style=\"height:73px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Book Time with a TaxOps Advisor<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:73px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">More Tax News<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div style=\"height:73px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Accounting Standards Board (FASB) green lit an income tax disclosure proposal that will bring more transparency to the taxes paid by companies. Starting as early as 2025, annual reports will now include a breakdown of year-to-date income tax payments, net refunds, and specify whether these were made to state, federal, or foreign taxing [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":12550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[230,228,226],"tags":[252,64,388,694,284,994,1050,126,796,1092,471,36,480,1093,44,67,1053,601,38,214,139],"class_list":["post-12544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asc-740","category-federal-tax","category-tax-news","tag-accountant","tag-accounting-for-income-taxes","tag-accounting-professionals","tag-asc-740-2","tag-cfo","tag-controller","tag-cp","tag-cpa","tag-exemption-certificates","tag-fasb","tag-finance-professionals","tag-income-tax","tag-income-tax-provision","tag-income-tax-reporting","tag-property-tax","tag-provision","tag-risk-reduction","tag-tax-administrations","tag-tax-compliance","tag-taxability","tag-voluntary-disclosure"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2023\/10\/FASB-reporting-changes.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=12544"}],"version-history":[{"count":4,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12544\/revisions"}],"predecessor-version":[{"id":12552,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12544\/revisions\/12552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/12550"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=12544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=12544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=12544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}