FASB is looking to remove the disclosure of deferred tax liabilities that are not recognized. Do you think this is a good idea, why or why not?
References:
FASB - Tentative Board Decisions 11/30/22 (Certain Disclosures Previously Exposed for Comment). Retrieved on April 5, 2023, from https://www.fasb.org/Page/PageContent?pageId=/meetings/pastmeetings/11-30-22.html&bcpath=tff#:~:text=Remove%20the%20requirement%20to%20disclose%20the%20cumulative%20amount,taxes%20related%20to%20subsidiaries%20and%20corporate%20joint%20ventures.

 

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Certain Disclosures Previously Exposed for Comment The Board affirmed the following three amendments in the 2019 revised Exposure Draft: 1. Replace the term public entity with the term public business entity. 2. Eliminate the requirement for all entities to (a) disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or (b) make a statement that an estimate of the range cannot be made. 3. Remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. Certain Disclosures Previously Exposed for Comment The Board affirmed the following three amendments in the 2019 revised Exposure Draft: 1. Replace the term public entity with the term public business entity. 2. Eliminate the requirement for all entities to (a) disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or (b) make a statement that an estimate of the range cannot be made. 3. Remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

Answer rating: 100% (QA)

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