The Financial Accounting Standards Board (FASB) came forward with an initiative to make amendments to Generally Accepted Accounting Principles (GAAP) to simplify the income tax calculation.
In accordance with this initiative, it is planned to exempt organizations from the application of the exceptions relating to the step-by-step approach to the income tax distribution between periods, the determination of the basic differences in the case of a change in the owner of foreign investment and the indication of expenses that exceeded the expected loss.
The proposed amendments should simplify the application of the income tax principles and GAAP for:
- franchise taxes that are partly based on income;
- agreements with state authorities, which raise the tax on intangible assets;
- separation of financial statements of non-taxable legal entities;
- application of amendments into the tax legislation in the interim period.
Comments on the FASB proposal are accepted until June 28, 2019.