Untitled Document

Tax accounting retrospective

January to June 2014

Highlights

Explore and read more about this issue's highlights:

Exploring tax accounting issues impacting your company

As part of our continued effort to help organizations navigate through the complexity of today's tax accounting issues, we've assembled a compilation of our Tax Accounting Services' publications released between January 2014 and June 2014.

A brief summary of the publications and links to the relevant documents are included for each topic.

April 2014

Global Tax Accounting Services Newsletter (January to March 2014)

In this first release for 2014 we provide an update on country-by-country reporting, discuss what auditor rotation proposals in the European Union mean for businesses with a presence in Europe, provide an update on an accounting alternative for non-public entities and the most recent International Financial Reporting Standards (IFRS) Interpretation Committee's guidance on certain tax related matters.

This publication also brings attention to some significant tax law and tax rate changes that occurred around the globe during the quarter ended 31 March 2014. Read the full story

Challenges multinationals may face in completing the OECD's country-by-country reporting template

On 30 January 2014, the Organisation for Economic Cooperation and Development (OECD) released a discussion draft on transfer pricing documentation and country by country reporting (CBCR) which included a template for country by country reporting of income, taxes, and economic activity (CBCR template). The purpose of the CBCR template is to provide tax authorities with the information necessary to conduct a high-level risk assessment of multinational entities (MNEs). During its second Base Erosion and Profit Shifting (BEPS) webcast on 2 April 2014, the OECD announced their tentative decision to amend certain aspects of the template that was exposed for comment to reflect the recommendations received from businesses and other commentators. Read the full story.

New York tax reform: Tax accounting considerations

On March 31, 2014, New York Governor Andrew Cuomo signed the state's fiscal year 2014-2015 (FY 14-15) executive budget legislation. The legislation overhauls the state's corporate tax regime and makes other changes to various tax provisions. Important changes include: eliminating the bank franchise tax and subjecting all corporations to a revised corporate franchise tax, reducing the corporate tax rate from 7.1% to 6.5%, implementing a new unitary combined reporting system, revising net operating loss provisions, establishing a single receipts factor apportionment formula with customer sourcing provisions, and providing for multiple tax credits.
Given that Accounting Standards Codification (ASC) Topic 740, Income Taxes, requires filers to reflect the impact of tax law changes in the period of enactment, Companies should ensure they have adequately reflected the tax law changes in any subsequently issued financial statements. Read the full story.

February 2014

Global Tax Accounting Services Newsletter (October-December 2013)

In this release we discuss a variety of accounting and reporting developments and the related tax accounting considerations. We also draw your attention to some significant tax law and tax rate changes occurring during the quarter ended 31 December 2013 and some important tax accounting issues to consider. Read the full story.

January 2014

Around the world: When to account for tax law changes

Keeping track of tax law changes around the world has increasingly become a challenge for businesses. Companies are rapidly expanding their geographic footprint at a time when the evolution and developments in jurisdictional tax laws are undergoing nearly constant change. Naturally, changes in tax law have an impact on tax planning, tax return preparation and, ultimately, tax cash flows. Those consequences, however, are often preceded by the impact of such changes on company financial reporting.

Companies reporting under US Generally Accepted Accounting Principles (US GAAP) or International Financial Reporting Standards (IFRS) need to understand when a change in tax law impacts the measurement of current and deferred income taxes — that is, they must understand in which reporting period the effects of a change in the law are to be recorded. Reporting groups should have procedures in place to ensure that the relevant financial accounting standard is properly applied. Failure to properly apply the relevant standard may result in current and deferred income taxes being misstated and reveal a weakness in controls. Read the full story.

How will recently expired US tax provisions affect your financial statements?

A number of widely relevant US tax law provisions affecting businesses expired on December 31, 2013. That includes the research and development tax credit, work opportunity tax credit, increased expensing and bonus depreciation allowances, and certain favorable 'subpart F' provisions (i.e., the look-through treatment of payments between related controlled foreign corporations and exceptions for certain active financing income). The financial reporting implications of these and other similar types of expirations need to be considered in the financial statements– often well in advance of the actual expriation. Read the full story.

How does the 2014 Mexican tax reform affect your financial statements?

In December, Mexico enacted a 2014 tax reform package, which will have immediate and ongoing income tax accounting consequences for many orgainizations. Companies with operations in Mexico should determine the impact of the new legislation on their financial statements under either US Generally Accepted Accounting Principles (US GAAP) or International Financial Reporting Standards (IFRS). Read the full story.

Additional resources

Check out a comprehensive library of our tax accounting thought leadership or visit:
www.pwc.com/us/en/tax-accounting-services/newsletters/tax-accounting/index.jhtml

PwC Guides to Accounting, including Accounting for Income Taxes, are available through:

Share this publication

Access a PDF copy of the article on PwC.com.

Let's talk

For questions about income tax accounting matters, please contact your local PwC team, our Tax Accounting Services leaders listed below, or the primary authors of each publication.

Market

Leader

Phone

Email

Global Tax Accounting Services Leader

Ken Kuykendall

(312) 298-2546

o.k.kuykendall@us.pwc.com

Atlanta

Ben Stanga

(615) 503-2577

ben.stanga@us.pwc.com

N. California–San Jose

Ty Kanaaneh

(408) 817-5729

ty.h.kanaaneh@us.pwc.com

N. California–San Francisco

Adan Martinez

(415) 498-6154

adan.martinez@us.pwc.com

Southern California

Darrell Poplock

(213) 356-6158

darrell.poplock@us.pwc.com

Carolinas

Tamara Williams

(704) 344-4146

tamara.williams@us.pwc.com

Chicago

Rick Levin

(312) 298-3539

richard.c.levin@us.pwc.com

Florida

Rafael Garcia

(305) 375-6237

rafael.h.garcia@us.pwc.com

Houston

Maria Collman

(713) 356-5091

maria.t.collman@us.pwc.com

Lake Erie

Mike Tomera

(412) 355-6095

michael.tomera@us.pwc.com

Michigan

Amy Solek

(313) 394-6767

amy.j.solek@us.pwc.com

Minneapolis

Chad Berge

(612) 596-4471

chad.berge@us.pwc.com

Missouri

Brian Sprick

(314) 206-8509

brian.sprick@us.pwc.com

Northeast

David Wiseman

(617) 530-7274

david.wiseman@us.pwc.com

New York Metro

Allen AhKao

(973) 236-5730

allen.p.ahkao@us.pwc.com

New York Metro

Gayle Kraden

(646) 471-3263

gayle.kraden@us.pwc.com

New York Metro

Gary Pogharian

(973) 236-5696

gary.m.pogharian@us.pwc.com

New York Metro

John Triolo

(646) 471-5536

john.triolo@us.pwc.com

Ohio, Kentucky, Indiana

Dan Staley

(513) 723-4727

daniel.j.staley@us.pwc.com

Pacific Northwest

Suzanne Greer

(206) 398-3339

suzanne.greer@us.pwc.com

Philadelphia

Diane Place

(267) 330-6205

diane.place@us.pwc.com

Rockies

Mike Manwaring

(720) 931-7411

michael.manwaring@us.pwc.com

North Texas

Steve Schoonmaker

(512) 708-5492

steve.schoonmaker@us.pwc.com

Washington Metro

Jamie Grow

(703) 918-3458

james.b.grow@us.pwc.com