The accounting standards overseer is proposing additional reporting on tax changes and cash held abroad
By Joseph McCafferty
July 27, 2016
The Financial Accounting Standards Board issued a proposed Accounting Standards Update that is intended to enhance disclosure requirements on business income taxes. The proposal would require public and private companies to change the way they report income taxes on their financial statements to include more information about country-by-country tax reporting and more about the cash they hold overseas to avoid paying U.S. taxes on foreign earnings.
The proposed update is part of the FASB's broader disclosure framework project to improve the effectiveness of disclosures in notes to financial statements by clearly communicating the information that is most important to users of a reporting organization's financial statements.