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.
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 storyOn 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.
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.
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.
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.
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.
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.
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:
Access a PDF copy of the article on PwC.com.
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 |
|
Global Tax Accounting Services Leader |
Ken Kuykendall |
(312) 298-2546 |
|
Atlanta |
Ben Stanga |
(615) 503-2577 |
|
N. California–San Jose |
Ty Kanaaneh |
(408) 817-5729 |
|
N. California–San Francisco |
Adan Martinez |
(415) 498-6154 |
|
Southern California |
Darrell Poplock |
(213) 356-6158 |
|
Carolinas |
Tamara Williams |
(704) 344-4146 |
|
Chicago |
Rick Levin |
(312) 298-3539 |
|
Florida |
Rafael Garcia |
(305) 375-6237 |
|
Houston |
Maria Collman |
(713) 356-5091 |
|
Lake Erie |
Mike Tomera |
(412) 355-6095 |
|
Michigan |
Amy Solek |
(313) 394-6767 |
|
Minneapolis |
Chad Berge |
(612) 596-4471 |
|
Missouri |
Brian Sprick |
(314) 206-8509 |
|
Northeast |
David Wiseman |
(617) 530-7274 |
|
New York Metro |
Allen AhKao |
(973) 236-5730 |
|
New York Metro |
Gayle Kraden |
(646) 471-3263 |
|
New York Metro |
Gary Pogharian |
(973) 236-5696 |
|
New York Metro |
John Triolo |
(646) 471-5536 |
|
Ohio, Kentucky, Indiana |
Dan Staley |
(513) 723-4727 |
|
Pacific Northwest |
Suzanne Greer |
(206) 398-3339 |
|
Philadelphia |
Diane Place |
(267) 330-6205 |
|
Rockies |
Mike Manwaring |
(720) 931-7411 |
|
North Texas |
Steve Schoonmaker |
(512) 708-5492 |
|
Washington Metro |
Jamie Grow |
(703) 918-3458 |