Legislation

SEC permits reasonable estimates in corporate tax reporting

Companies that are having trouble accounting for the effects of the recently enacted Tax Cuts and Jobs Act, P.L. 115-97, can report reasonable estimates for those effects in their financial statements for the reporting period in which the law was enacted, according to an SEC staff accounting bulletin.

The law was enacted Dec. 22, and the SEC issued Staff Accounting Bulletin No. 118 to guide reporting entities that do not have the necessary information available, prepared, or analyzed to complete the accounting under FASB ASC Topic 740, Income Taxes.

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