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Fair value and tax reform are joining revenue recognition, leasing, and credit losses as the hot accounting issues for 2018, Jim Dolinar, chairman of the Financial Reporting Executive Committee (FinREC) told Bloomberg Tax.
“Fair value continues to be a challenge to a number of people,” Dolinar said in a Dec. 6 interview videotaped at the AICPA National Conference on Current SEC and PCAOB Developments. So in 2018, the FinREC is “looking at two guides relating to fair value matters,” he said.
See video here: https://www.bna.com/finrec-chairman-speaks-m73014473798/
Any time you see major changes in tax reform [there is] a little anxiety in the system. especially when those changes are talked about close to year end,” Dolinar said. “It really could put a lot of pressure on the profession, preparers, auditors, and the like.”
The tax reform disclosures will be important for users of financial statements. “Companies will need to think about is: is there enough information to make a reasonable estimate of what that [tax] impact might be?” he said. “Making that assessment might take until companies must file their financial reports,” he said.
In response to a question from Bloomberg Tax about the deferred tax assets and tax liabilities on a company’s balance sheet, Dolinar said those topics will be the “fundamental issue that people will struggle with, [and] in many cases it will not be as simple as adjusting from 35 percent [to 21 percent], noting there are further complexities that can only be discovered through reading and understanding the tax reform bill.”
To contact the reporter on this story: Jospeh Bailey in Washington at jbailey@bloombergtax
To contact the editor responsible for this story: S. Ali Sartipzadeh at email@example.com
Copyright © 2018 Tax Management Inc. All Rights Reserved.
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