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FASB Improves Accounting Related to the Tax Cuts & Jobs Act

Stranded Tax EffectThe Financial Accounting Standards Board (FASB) addressed an accounting issue created by the Tax Cuts & Jobs Act by releasing FASB Accounting Standards Update (ASU) 2018-02, Income Statement – Reporting Comprehensive Income. This ASU addresses an accounting issue having been coined the name “the stranded tax effect” and is relevant for those entities structured as a C Corporation, as well as those having accumulated other comprehensive income. Click [here] for a link directly to the FASB.

For more information or assistance with implementing the ASU 2018-02, please contact Linda Marie Pearson, CPA, CFE, at 401-752-0566.