SEC Provides Guidance on Accounting Impacts of the Tax Cuts and Jobs Act
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Key Takeaways:
- On December 22, 2017, the Staff of the Securities and Exchange Commission issued guidance intended to facilitate the timely public disclosure of the accounting impacts of the Tax Cuts and Jobs Act enacted on December 22, 2017.
- New Staff Accounting Bulletin No. 118 expresses the Staff’s views regarding the application of U.S. GAAP when preparing an initial accounting of the income tax effects of the Tax Act and new Compliance and Disclosure Interpretation 110.02 expresses the Staff’s views regarding the applicability of Item 2.06 of Form 8-K with respect to reporting the impact of a change in tax rate or tax laws pursuant to the Tax Act.
- SAB 118 addresses situations in which a registrant does not have the necessary information available, prepared, or analyzed to complete the required accounting for certain income tax effects of the Tax Act for the reporting period during which the Tax Act was enacted.