Improve Transparency Under ASC 740: New Income Tax Disclosures (ASU 2023-09)

Practice Aid alarm

By accessing the FASB documents on this site, you accept and agree to these FASB terms and the website terms as applied to your use of this site or any FASB licensed documents.


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.