The enactment of tax reform on December 22, 2017, introduces the most significant legislative change to the tax system since the Reagan administration. It also includes the most substantial international tax reform in decades, and is a major overhaul of the Internal Revenue Code (IRC) that will impact every taxpayer in the U.S.
Tax reform will have a considerable financial reporting impact, and particularly as it relates to ASC Topic 740 Income Taxes (ASC 740). Reporting entities are required to record the impact of tax reform in the period that includes the enactment date. This publication addresses the accounting for income tax implications and financial statement disclosures associated with key tax law changes.