In response to investor demands, FASB issued a proposal on March 15, 2023 that would add new income tax disclosures for all entities. Public business entities would be required to prepare an annual detailed, tabular tax rate reconciliation. All other entities would be required to provide qualitative disclosure on specific categories and individual jurisdiction that result in significant differences between the statutory and effective tax rates. All entities would be required to disclose the year-to-date income taxes paid by federal, state, and foreign taxes on an interim and annual basis. On an annual basis, all entities would be required to disaggregate taxes by individual jurisdiction if taxes paid exceed 5% of total income taxes paid. Read on for the details.
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