On March 25, 2019, the FASB issued a proposed Accounting Standards Update (ASU) (Links to an external site.), Disclosure Framework-Changes to the Disclosure Requirements for Income Taxes, which would significantly impact income tax disclosures. The proposed ASU is part of the Board’s on-going project to improve disclosure effectiveness.
After studying the proposal and related authoritative literature, answer the following:
1) What are the proposed disclosure requirements for all entities?
2) Are there expanded requirements for business entities?
3) Are there disclosure requirements for non-public entities?
4) Have any requirements been reduced or eliminated?
5) Can you predict the impact of this proposed ASU on any stakeholders? Explain.
6) Write a comment on the proposal that you would issue to the FASB.
Requirements:
All work needed to arrive at your answer should be displayed and decisions should have a discussion of the reasoning used to arrive at the decision. If there are divisions to the problem, label them appropriately.
Any written explanations should use complete sentences, and appropriate grammar, punctuation, spelling and word usage.
