The Financial Accounting Standards Board (FASB) recently proposed changes to income tax reporting. The Board released an exposure draft on January 22, 2015, that affects Income Taxes (Topic 740) for intra-entity asset transfer and the balance sheet classification of deferred income taxes.
Changes in the updates are designed to streamline current practices and simplify financial reporting requirements. The FASB accepted comments on both of the proposed updates through May 29, 2015. As proposed, the new standards would first be implemented for calendar years ending December 31, 2017, and interim periods within those years.