Disclosure Framework—Disclosure Review: Income Taxes
Last updated on January 16, 2015. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Updated sections are indicated with an asterisk *)
The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
Project Objective and OverviewThe objective and primary focus of the Disclosure Framework project is to improve the effectiveness of disclosures in notes to financial statements by clearly communicating the information that is most important to users of each entity’s financial statements. Achieving the objective of improving effectiveness will require development of a framework that promotes consistent decisions about disclosure requirements by the Board and the appropriate exercise of discretion by reporting entities.
The objective of improving effectiveness will require development of a framework that promotes consistent decisions about disclosure requirements by the Board and the appropriate exercise of discretion by reporting entities. To achieve this objective, the Disclosure Framework project comprises two components: the Board’s Decision Process and the Entity’s Decision Process.
The Board has decided to perform reviews of four areas that will incorporate both components of the Disclosure framework project. Therefore, each review will include (1) an evaluation of existing disclosure requirements within the Topic after applying the concepts in the Board’s decision process and (2) consideration of ways to promote the appropriate use of discretion specifically within the Topic.
This page provides updates on the disclosure review of Income Taxes (740-10-50). For information on the other three disclosure reviews, see the following: Interim Reporting are being evaluated for modifications.
The FASB staff has developed a “Q&A: FASB’s Disclosure Framework Project” fact sheet which can be viewed here.
*Decisions Reached at Last Meeting (January 7, 2015)The Board discussed disclosures about undistributed foreign earnings and decided that changes to existing disclosure requirements, if any, would be exposed for public comment as part of the Disclosure Review—Income Taxes project.
Next StepsThe Board will discuss potential changes to the Topic disclosures on the basis of the concepts and decision questions in the recently issued proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting Chapter 8: Notes to Financial Statements in a future decision-making meeting.
*Board/Other Public Meeting DatesThe Board meeting minutes 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.
|*January 7, 2015||Board Meeting—Disclosure Review|
|April 4, 2014||Board Meeting—Field Study Results and Next Steps|
*Contact InformationNick Cappiello
Assistant Project Manager
Postgraduate Technical Assistant
Postgraduate Technical Assistant