As entities prepare to adopt new revenue and contract cost recognition guidance for financial reporting, a key component of the analysis performed may be assessing the impact adoption has on accounting for income taxes. Entities will need to consider a variety of accounting for income taxes matters beyond the direct tax effect of changes to the financial reporting of revenue.
A report from KPMG LLP explores some of the accounting for income taxes considerations of the new standard by analyzing how an entity may need to evaluate if and when changes to tax accounting methods are expected and permissible by the respective taxing authority.
Read a November 2017 report [PDF 218 KB] prepared by KPMG LLP: What’s News in Tax: Accounting for Income Taxes Considerations of Adopting New Revenue Recognition Guidance
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