Income tax disclosures
Hot Topic | August 2025
Latest edition: We address common questions and next steps for the application of the disaggregation enhancements.
This Hot Topic provides insight into the implementation of ASU 2023-09 and how to identify the many moving parts in disaggregating income tax disclosures. We have updated our guidance to include implementation next steps and new observations based on questions we have encountered in practice.
Relevant dates
| Effective date | Public entities | All other entities |
|---|---|---|
| Annual periods – Fiscal years beginning after | Dec. 15, 2024 | Dec. 15, 2025 |
| Early adoption is allowed | For annual financial statements not yet issued or made available for issuance. | |
Key Impacts:
We summarize the guidance in the ASU on a topic-by-topic basis and provide our observations related to implementing the guidance based on our current understanding of the ASU. Discussion and detailed examples are provided about disaggregating:
- the effective tax rate reconciliation,
- income taxes paid, and
- pretax income (loss) and income tax expense (benefit), both from continuing operations.
We share answers to many of the questions encountered in practice when implementing the ASU.
Report contents
- Rate reconciliation categories
- Income taxes paid
- Pretax income (loss) and income tax expense (benefit), both from continuing operations
- Change in scope of certain preexisting disclosure requirements
- Eliminated disclosures
- Effective date
- Transition
- Disclosures about standards not yet adopted (i.e. SAB 74)
- Implementation next steps
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Income tax disclosures
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