The Financial Accounting Standards Board has promised it will re-examine some of the more vexing areas of tax accounting, including the accounting around transfer pricing, as a result of a review of how existing accounting rules are working in practice.
FASB Chairman Russ Golden said a post-implementation review of Financial Accounting Statement No. 109, Accounting for Income Taxes, offers some important feedback on the costs and benefits of the standard following extended use of the rule. FAS 109 was adopted in 1992 to set new standards on how companies should reflect taxes in their financial statements, especially tax assets and liabilities arising from differences between tax and financial reporting rules.
