SEC Staff Bulletin for New Tax LawBy
The SEC published Staff Accounting Bulletin No. 118, which provides guidance to financial statement preparers on how to handle uncertainty and diversity in the accounting for the income tax effects of the Tax Cuts and Jobs Act passed by Congress and signed by the President at the end of 2017.
Preparers generally look to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740, Income Taxes, for guidance for accounting related to income taxes. But questions have arisen regarding different approaches to the application of the accounting and disclosure guidance in ASC 740 to the new law and regarding the limited time from enactment to filing deadlines. That’s where the new Bulletin comes in (http://bit.ly/2E0dnfC).