Project Update

Disclosure Framework—Disclosure Review: Income Taxes

Last updated on October 10, 2017. 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 Overview
Due Process Documents
Decisions Reached at Last Meeting
Tentative Board Decisions Reached to Date
Next Steps
Board/Other Public Meeting Dates
*Contact Information

Project Objective and Overview

The objective and primary focus of the Disclosure Framework project is to improve the effectiveness of disclosures in the 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 requires 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 that objective, the Disclosure Framework project comprises two components: the Board’s Decision Process and the Entity’s Decision Process.

Currently, four disclosure areas are being evaluated as part of the Disclosure Framework project. Each review will include (1) evaluation of existing disclosure requirements within the Topic after applying the concepts in the Board’s decision process and (2) promotion of the appropriate use of discretion by entities specifically within the Topic.

This page provides updates on the disclosure review of Income Taxes (Section 740-10-50). For information on the other three disclosure reviews, see the following:
  1. Defined Benefit Plans (Section 715-20-50)
  2. Fair Value Measurement (Section 820-10-50)
  3. Inventory (Section 330-10-50).
Additionally, disclosure requirements for 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.

Due Process Documents

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.

Decisions Reached at Last Meeting (January 25, 2017)

The Board discussed a summary of comments received on the proposed Accounting Standards Update, Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes. No technical decisions were made at this meeting.

Tentative Board Decisions Reached to Date

Tentative Board Decisions Reached to Date

Next Steps

On June 6, 2017, the Board will meet with its Investor Advisory Committee to discuss the disclosure framework project. After that meeting, the staff will develop and present a plan for redeliberations.

Board/Other Public Meeting Dates

The 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 25, 2017 Board Meeting—Disclosure Review
June 08, 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
February 11, 2015 Board Meeting—Disclosure Review
January 7, 2015 Board Meeting—Disclosure Review
April 4, 2014 Board Meeting—Field Study Results and Next Steps

*Contact Information

Nick Cappiello
Supervising Project Manager
ntcappiello@fasb.org

Jin Koo
Practice Fellow
jkoo@fasb.org

Kelly Coyne
Postgraduate Technical Assistant
kcoyne@fasb.org

Haoran Jiang
Postgraduate Technical Assistant
hjiang@fasb.org