SEC Issues Guidance on Accounting for Tax Reform
January 2, 2018
The Securities and Exchange Commission on Dec. 22 issued a staff bulletin and related guidance regarding accounting for the tax reform bill that was signed into law that same day. Addressing several key financial reporting issues expressed to the commission by ABA and other organizations, the guidance recognizes the challenges associated with the timing and complexity of the calculations required by the enactment of tax reform. It also recognizes that estimates are required and that there may be a need for adjustments when information becomes available.
The guidance generally provides a one-year period for making refinements to estimates, but notes that if actual or reasonable estimations of tax reform effects are available, they should be reported in the year of enactment, which is 2017. It also includes guidance on Regulation 8K disclosure requirements. ABA believes that the SEC guidance also effectively sets the framework for expectations by the banking agencies in examining non-SEC registrants.
Read the SEC press release.
Read the staff bulletin.
Read the guidance.