FASB's Simplification Initiative

Holzmann, Oscar J.; Munter, Paul

doi:10.1002/jcaf.22129

Cited by 1 publication

(3 citation statements)

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“…etc. (Holzmann & Munter, 2015). A key area of interest is the accounting for income taxes project, found in many ASU, such as ASU 2015-2017 ASU 2015-2017 is one of the earlier updates made to FASB ASC § 740, focusing mostly on the simplifications regarding deferred taxes.…”

Section: 4mentioning

confidence: 99%

“…The projects of the simplification initiative of FASB are intended to increase the usefulness of the information reporting on financial statements, while reducing the costs associated with complexity in the Codification (Holzmann & Munter, 2015). What this means is that the simplification initiative's main strategy is the creation of projects whose intended goals are to make the usage of information from the Codification concise, while retaining efficacy.…”

Section: Introductionmentioning

confidence: 99%

“…Some of the main projects of the simplification initiative are: Customer's accounting for fees paid in a cloud computing arrangement, extraordinary items, measurement date of defined pension plan assets, presentation of debt issue… etc. (Holzmann & Munter, 2015). A key area of interest is the accounting for income taxes project, found in many ASU, such as ASU 2015–2017…”

Section: Introductionmentioning

confidence: 99%

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FASB ASC § 740 simplification of income taxes: An evaluation of the effects on U.S. corporate financial statements from 2015‐present

Green

Mason

Boyer‐Davis

2022

J Corp Accounting Finance

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The FASB Codification is a key document in financial accounting as it serves the role of authoritative guidance for a majority of the field. The main problem associated with the Codification comes from its unwieldly complexity, which can give rise to corruption in financial reporting, compliance issues, and general difficulty in application. To combat such issues, FASB has undertaken several projects, referred to as the simplification initiative, to reduce complexity in order to provide better cost-benefit usage of the guidance. Simplification of the Codification also provides several supplemental benefits, such as closer guidance to IFRS standards and reduced corruption activities. An examination of the impacts of the simplification initiative on corporate financial accounting relating to accounting standards update (ASC) § 740, accounting for income taxes demonstrates the benefits of simplification, as well as any detriments that may exist. By looking at the history of simplification and taxes, certain estimations of the effects of future changes may be determined.

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Section: 4mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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