The FASB issued an accounting standards update (ASU) that addresses requests for improved income tax disclosures from investors, lenders, creditors, and other allocators of capital that use financial statements to make capital allocation decisions.
The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction.
The ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. Learn more.