Bloomberg Tax and Accounting launched an embedded solution to help users adhere to the FASB Accounting Standards Update (ASU 2023-09) that concerns income tax disclosures.
In general, the amendment requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). Entities must do so via a tabular reconciliation, using both percentages and reporting currency amounts. (House Republicans introduced a spending proposal in July containing a provision that threatens to withhold funds from FASB until it withdraws the standard.)
The solution works by disaggregating income tax rate reconciliations into eight specific categories, presented in both percentages and dollar amounts as required by ASU 2023-09. It also provides additional disclosure for taxes paid across federal, state and foreign jurisdictions, creating greater transparency for stakeholders and streamlining the often-complex tax provision process.
The software also includes new and updated tools to further simplify workflow, such as the ASU 2023-09 Rate Rec Tab Report and an updated auditor’s report with the new rate reconciliation tab.
“The updates to Bloomberg Tax Provision demonstrate our commitment to helping companies stay ahead of regulatory changes,” said Evan Croen, head of Bloomberg Tax. “By leveraging Bloomberg Tax Provision in conjunction with Bloomberg Tax Workpapers, corporate tax professionals can save time and enhance accuracy, all while ensuring compliance with the new FASB requirements for years to come.”
The announcement comes just a few weeks after Bloomberg T&A announced a bevy of new features for its AI Assistant. It now sports an integration with Bloomberg Tax news pages and articles, enabling users to interact with news articles to extract tax-related implications or track emerging developments without disrupting their workflow. This is on top of the tax content it already draws upon, such as Bloomberg Tax Portfolios. The AI Assistant remains available at no additional cost to Bloomberg Tax subscribers and was developed in Bloomberg Tax’s Innovation Studio, an experimental development environment that integrates user feedback to refine and optimize features.
