Improvements to Income Tax Disclosures for Public Business Entities

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 Income Taxes (Topic 740) – Improvements to Income Tax Disclosures. The ASU looks to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and by requiring income taxes paid disaggregated by jurisdiction.

For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025.