The Convergence of FAS 109 and IAS 12
Insights on the corporate income tax accounting convergence project
International Financial Reporting Standards (IFRS) is a hot topic — one that has produced some significant developments and frequent media attention over the past year. The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) continue to work together to converge U.S. accounting standards and IFRS. Income tax accounting is just one of the projects on which the FASB and IASB are collaborating as part of their convergence plan. Additionally, the Securities and Exchange Commission has been discussing potential rulemaking that may include an optional and mandatory conversion to IFRS for U.S. public companies. Given the pace and direction of developments, companies may need to think about IFRS — both convergence and conversion — sooner rather than later.
A new report, "FAS 109 and IAS 12: Insights on the corporate income tax accounting convergence project," discusses the background and objectives of the project as well as planning considerations. Specifically the report discusses:
- Trends in the use of IFRS
- Recent developments in the corporate income tax convergence project
- The possible fate of FAS 109
- Considerations for a conversion to IFRS
Learn more about the corporate income tax convergence project in the full report attached at the bottom of this page.