FASB is seeking comments on a proposed Accounting Standards Update (ASU) that addresses requests for improved income tax disclosures from investors, lenders, creditors and others who use financial statements to make capital allocation decisions.
The proposed ASU, Income Taxes (Topic 70), primarily related to the rate reconciliation and income taxes paid information, intends “to help investors better assess how an entity’s worldwide operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows,” FASB Chair Richard Jones said in a news release.
FASB will accept comments on the proposed ASU through May 30 via email to director@fasb.org.