Tax Insights: Get Ready to Implement ASU 2023-09 Income Tax Disclosures

The Accounting Standards Update (ASU) 2023-09, issued by the Financial Accounting Standards Board (FASB), aims to enhance transparency and improve the clarity of income tax disclosures.

When is the new standard effective?

Generally, ASU 2023-09 is effective for public business entities beginning in calendar year 2025 and other entities one year later. This update introduces several key changes that impact how companies report income tax-related information in their financial statements.

What does ASU 2023-09 mean for businesses and tax reporting professionals?

For CFOs, accounting leaders, and tax professionals, Riveron’s tax advisory brief outlines the high-level impacts and steps companies can take in anticipation of implementing ASU 2023-09 —Improvements to Income Tax Disclosures, which is an important update to the FASB guidance on Income Taxes (Topic 740).