SEC Provides Guidance on Disclosure and Accounting Impacts of the Tax Cuts and Jobs Act

SEC Provides Guidance on Disclosure and Accounting Impacts of the Tax Cuts and Jobs Act


By:  Stuart H. Gelfond, Joshua Thomas Coleman, Edward Welch, Jared Heady, Sam Spiegelman

 On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017 (the “Act”), which makes extensive changes to the U.S. tax laws and includes a variety of provisions that will affect businesses. In response to certain provisions of the Act, the Staff of the Securities and Exchange Commission (the “SEC”) has provided disclosure guidance on (1) whether the re-measurement of a deferred tax asset to account for the tax effects of the Act trigger a disclosure obligation under Item 2.06 of Form 8-K, and (2) how and when to present the income tax effects in a registrant's financial statements for the reporting period in which the Act went into effect when the accounting remains incomplete. This Memorandum summarizes the recent SEC guidance.

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