How to prepare for ASU 2023-09 - Improvements to Income Tax Disclosures
The Accounting Standards Update (ASU) 2023-09, issued by the Financial Accounting Standards Board (FASB), aims to enhance transparency and improve the clarity of income tax disclosures. Generally, ASU 2023-09 is effective for public business entities beginning in calendar year 2025 and other entities one year later. This update introduces several key changes that impact how companies report income tax-related information in their financial statements.
Steps to implement:
- Assess current disclosure practices
- Coordinate with tax and accounting teams
- Develop internal tax department systems and processes
- Provide training and education
- Update financial reporting processes
By taking these steps, companies can ensure they comply with the updated disclosure requirements under ASU 2023-09 and minimize any risks related to inaccurate or incomplete income tax disclosures.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
