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FASB Turns Eye Toward Tax Disclosures

By:
Chris Gaetano
Published Date:
Mar 17, 2016

TaxWorryFinancial Accounting Standards Board Vice Chairman James Kroeker said at a recent conference that the board is working on two proposals that will get companies to disclose more tax information, according to Bloomberg. One would require that companies disclose unremitted foreign earnings, as well as the amount of taxes paid domestically vs. those paid in foreign jurisdictions. The other would make small changes in how companies report potential changes in unrecognized tax benefits, such as removing the forward-looking projection requirement. 

Kroeker, who is the former SEC chief accountant, emphasized that while sheltering taxes in foreign jurisdictions is a major political issue, the IMPETUS for these projects came from investors. He said they have nothing to do with tax structures, tax planning or how an entity chooses to conduct its operations and fiduciary responsibility to its shareholders. 

He did not give any specifics as to when the FASB would release exposure drafts for these proposals.