An Analysis of the Initial Financial Statement Impact of the Tax Cuts and Jobs Act

Kim Honaker, CPA, DBA, and Paula B. Thomas, CPA, DBA

In BriefThe Tax Cuts and Jobs Act of 2017 (TCJA) is generally considered the most significant tax legislation since the Tax Reform Act of 1986. While companies initially focused on the law's tax consequences, financial statement considerations are also significant, particularly given the proximity of the law's passage to the 2017 calendar year-end. The authors explore the TCJA's impact on a sample of 75 public companies with December 31 fiscal year-ends. The complexity of the new law makes assessing its initial impact on corporate financial reporting difficult and contingent upon an entity's circumstances.