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The SEC staff issued Staff Accounting Bulletin (SAB) 118 and Compliance and Disclosure Interpretation 110.02 addressing US tax reform, which was enacted on 22 December 2017. This SAB clarifies how companies that haven’t completed their accounting for the effects of the most significant change in US tax legislation in the last 30 years by their financial reporting deadlines should apply ASC 740. Under the SAB, a company can report provisional amounts based on reasonable estimates for items for which the accounting is incomplete. A company that cannot make a reasonable estimate of an item for which the accounting is incomplete should not account for that effect until it can make such an estimate. Those amounts will be subject to adjustment during a measurement period of up to one year.