Your business may be interested in a potential revision of the income tax disclosure rules by the Financial Accounting Standards Board (FASB).
The Leventhal School of Accounting of the University of Southern California hosted the 40th Annual SEC and Financial Reporting Institute Conference on June 2, 2022. A conference panel discussed the complexity of managing taxes at a company—the Walt Disney Company in this case.
Therefore, the Executive Vice President, Controllership, Finance, and Tax at Disney, Brent Woodford, proposed that revising the income tax disclosure through the lens of management could help reduce said complexity.
He explained that the location where a company pays its taxes should be accessible to investors. He added that the Organization for Economic Co-operation and Development (OECD) also has a project to ensure this.
This revision aims to help investors be aware of a company’s potential jurisdictional risks regarding tax payments. Moreover, investors have added transparency to a company’s vulnerability to possible changes in tax legislation or other opportunities.
The disconnection between when a company pays its taxes and when it books it in the form of audit settlements and prepayments contributes to this complexity. Therefore, a reduction in this process’s complexity and added transparency for investors can benefit companies in the long term.
More investment opportunities can result in better business growth and accomplishing goals that otherwise may not have been possible.
What can you do to ensure your company operates optimally amid such changes in tax rules?
Of course, if there is a revision in the income tax disclosure rules, your company will need to change how it manages its tax-related operations. Working with a partner can make the process simpler and more cost-effective in the long term.
Our company, Integrity Accounting Solutions Inc. (IAS), is a full-service accounting and bookkeeping service provider with over 220 years of heritage. Thus, our experience and expertise combined have enabled us to work with a diverse range of businesses.
If you want to partner your business with ours to handle such matters, contact us today to book a free consultation. Whether you’d like to interact digitally or in person at one of our offices in Glendale or Long Beach, we’re ready.
Moreover, while we predominantly operate in California, we also serve clients from different parts of the country.
Thank you for your time and consideration.
Sincerely,
The devoted team at IAS.
