IMA Financial Reporting Committee comment letter on Proposed Accounting Standards Update (ASU) No. 2019-700, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
Tuesday, July 9, 2019
The IMA Financial Reporting Committee (FRC) issued a comment letter in response to the FASB’s Proposed ASU No. 2019-700, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In this release, the FASB proposes several amendments to the current guidance regarding the accounting for income taxes.
In its response, the FRC generally supports the FASB’s efforts to simplify the accounting required under Topic 740, Income Taxes, and related Codification provisions. The Committee, however, raises two points for the FASB to reconsider. The first relates to the FASB’s proposal to remove the current exception to incremental approach for intraperiod tax allocation if an entity has a loss from continuing operations and income or a gain from other items. The second relates to the proposed transitional method for franchise (or similar) taxes that an entity would characterize as income taxes under the amended guidance, if adopted.
The IMA Financial Reporting Committee (FRC) issued a comment letter in response to the FASB’s Proposed ASU No. 2019-700, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In this release, the FASB proposes several amendments to the current guidance regarding the accounting for income taxes.
In its response, the FRC generally supports the FASB’s efforts to simplify the accounting required under Topic 740, Income Taxes, and related Codification provisions. The Committee, however, raises two points for the FASB to reconsider. The first relates to the FASB’s proposal to remove the current exception to incremental approach for intraperiod tax allocation if an entity has a loss from continuing operations and income or a gain from other items. The second relates to the proposed transitional method for franchise (or similar) taxes that an entity would characterize as income taxes under the amended guidance, if adopted.
