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Are you wanting to increase the clarity of your income tax disclosures? The Financial Accounting Standards Board’s new Accounting Standards Update (ASU) No. 2023-09, Improvements to Income Tax Disclosures, outlines ways to enhance transparency and provides actionable insights.
The update provides expanded requirements, including detailed rate reconciliations for public business entities (PBEs) and jurisdiction-specific tax payment disclosures for all organizations, to help ensure your financial statements are more informative and decision-ready than ever. By embracing the latest disclosure standards, you can stay ahead of regulatory changes, streamline compliance, and build trust with stakeholders.
Our BDO publication, BDO Knows ASC 740: New Income Tax Disclosures (ASU 2023-09), offers insights and breaks down the update’s key provisions, including:
- Income taxes paid;
- Rate reconciliation for PBEs;
- Rate reconciliation for entities other than PBEs;
- Unrecognized tax benefits;
- Other income statement disclosures;
- Interim reporting;
- Eliminated disclosures; and
- Transition and effective dates.
For PBEs, the ASU is effective for fiscal years beginning after December 15, 2024.
Have questions about how ASU 2023-09 could affect you and your business? Contact our BDO Income Tax Accounting Team today.