Nov 26, 2013
From the Financial Reporting Network
The Financial Accounting Foundation (FAF) recently issued a post-implementation review report about FASB Statement No. 109, Accounting for Income Taxes (as codified in FASB ASC Topic 740, Income Taxes). The review team concluded that Statement 109 generally achieved its purpose and is understandable for preparers, and that financial statements that apply Statement 109 provide investors with decision-useful information. However, Statement 109 may not have reduced the complexity of accounting for income taxes.
The FAF is responsible for the oversight, administration, and finances of the FASB and the GASB. The FAF’s post-implementation review process is independent of the standard-setting process of the Boards and is intended to help the FAF Board of Trustees with its ongoing efforts to evaluate the effectiveness of the Boards’ standard-setting processes.