Brief #1
The Securities and Exchange Commission’s (SEC) released a proposed update
relating to Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes. The
codifications included in this proposed amendment section include changes in recognition
(ASC740–10–25), where the amendment of guidance clarifies when to recognize a step
up in goodwill would be originally recognized and be considered a separate transaction.
The initial measurement section (ASC740–10-30 and ASC740-270-30) will also be
affected in terms of amendment, which indicates that an entity is not obligated to allocate
the current/differed tax expense to other entities that are not subject to tax, while also
removing the exception for the calculation of interim period losses that exceed the
anticipated losses for the year. Additionally, this proposed update affects the disclosure
