The Financial Accounting Standards Board has issued a staff Q&A signaling that it would not object to private companies and not-for-profit organizations applying a recent Securities and Exchange Commission staff accounting bulletin that addresses several key financial reporting issues that resulted from the tax reform bill.
SAB 118 generally provides a one-year period for making refinements to estimates, but notes that if actual or reasonable estimations of tax reform effects are available, they should be reported in the year of enactment, which is 2017. FASB noted that private companies and nonprofits applying SAB 118 should apply all relevant aspects of the bulletin in its entirety. For more information, contact ABA’s Josh Stein.
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