The February issue of the Journal of Accountancy discusses the new standard issued by the Financial Accounting Standards Board (FASB) that is intended to improve how deferred taxes are classified on organizations’ balance sheets. The goal in the new standard is to make financial reporting less complicated while still providing the necessary information.
Currently, an entity must separate deferred tax liabilities and assets into current and noncurrent amounts in a classified statement. The new standard simplifies this process and requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement.
The amendment takes effect for financial periods beginning after Dec. 15, 2016 for public companies and beginning after December 15, 2017 for private companies, not-for-profits, and employee benefit plans.
To read the full referenced article, click here. For more information on financial reporting and the new standard issued by the FASB, please contact Patrick Mutchler, (231) 726-5870 or email@example.com.