FASB suspends income tax project

The Financial Accounting Standards Board (FASB) stopped all deliberations on accounting of income taxes and plans no amendments to FAS 109 in the nearest future, awaiting the next move by the International Accounting Standards Board (IASB) with its IAS 12 and the Securities and Exchange Commission’s draft rule on transfer from the U.S. GAAP to International Financial Reporting Standards (IFRS) - Ken Kuykendall, Jennifer Spang and Tony de Bell from PricewaterhouseCoopers (PwC) commented, saying that although both approaches are very similar to each other (for instance, both use balance sheet approach), there are some nuances in accounting in case of deferred taxes, stock-based compensation and intercompany transfers which require reconciliation.