The US Financial Accounting Standards Board (FASB) is looking into enhanced income tax disclosures, including with respect to investor requests for more information breaking down global tax risks faced by companies, according to a June 24 consultation on FASB priorities.
The FASB noted that investors have expressed a need for more information from companies regarding their exposure to global tax risks and potential changes in tax laws. Possible enhancements to address this could include requiring disclosure of country-by-country information on taxes paid, as well as disaggregating particular taxes paid, such as global intangible low-taxed income (GILTI) and the base erosion and anti-abuse tax (BEAT).
In addition, investors have suggested that requiring companies to break out operating results by jurisdiction could also help investors better understand the company’s tax risks.
The FASB explained that it is currently studying such issues in connection with its technical agenda’s income tax disclosures project.
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