Example Disclosures REVISED 2/2/18

Transcription

1 Appendix 2 to FASB Taxonomy Release Notes Proposed Accounting Standards Update Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Other Comprehensive Income Example Disclosures REVISED 2/2/18

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3 Table of Content Page Number Example 1a Consolidated Statement of Stockholders Equity... Example 1b Disclosure of Changes in Other Comprehensive Income (Loss)... Example 2a Accounting for TCJA*, Incomplete, Provisional... Example 2b Accounting for TCJA, Complete... Example 2c Accounting for TCJA, Incomplete, With and Without Estimate * TCJA Tax Cuts and Jobs Act of 2017 i

4 Example 1a Consolidated Statement of Stockholders Equity This example provides a Statement of Stockholders Equity to illustrate the reclassification of certain tax effects of the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income as they appear in this statement. Outstanding shares Entity XYZ Consolidated Statement of Stockholders' Equity A1:M1 A1:M2 A1:M3 A1:M4 A1:M5 Common stock Additional paid-in capital Retained earnings other comprehensive (loss) income Noncontrolling interest Total Balance at December 31, 2014 L4 100,000 L5 $ 1,000 $ 840,000 $ 1,688,715 $ (131,400) $ (13,215) $ 2,385,100 Net income L1 60,840 10,160 71,000 Other comprehensive income, net of tax L3 3,050 5,960 9,010 Compensation under stock-based plans, net L2 20,000 20,000 Balance at December 31, 2015 L4 100,000 L5 1, ,000 1,749,555 (128,350) 2,905 $ 2,485,110 Net income L1 68,445 11,430 79,875 Other comprehensive income, net of tax L3 4,350 4,690 9,040 Compensation under stock-based plans, net L2 25,000 25,000 Balance at December 31, 2016 L4 100,000 L5 1, ,000 1,818,000 (124,000) 19,025 2,599,025 Net income L1 76,050 12,700 88,750 Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect L6* (14,000) 14,000 - Other comprehensive income, net of tax L3 5,750 3,275 9,025 Compensation under stock-based plans, net L2 15,000 15,000 Balance at December 31, 2017 L4 100,000 L5 $ 1,000 $ 900,000 $ 1,880,050 $ (104,250) $ 35,000 $ 2,711,800 Figure 1a.1 1

5 The legend for the elements used to tag these facts is: Standard Label Balance Type Data Type Period Type Element Name A1 Equity Components [Axis] stringitemtype Duration StatementEquityComponentsAxis Equity Component [Domain] domainitemtype Duration EquityComponentDomain M1 Common Stock domainitemtype Duration CommonStockMember M2 Additional Paid-in Capital domainitemtype Duration AdditionalPaidInCapitalMember M3 Retained Earnings domainitemtype Duration RetainedEarningsMember M4 AOCI Attributable to Parent domainitemtype Duration OtherComprehensiveIncomeMember M5 Noncontrolling Interest domainitemtype Duration NoncontrollingInterestMember L1 L2 Net Income (Loss), Including Portion Attributable to Noncontrolling Interest Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition Credit monetaryitemtype Duration ProfitLoss Credit monetaryitemtype Duration AdjustmentsToAdditionalPaidInCapitalSharebasedCompensation RequisiteServicePeriodRecognitionValue L3 Other Comprehensive Income (Loss), Net of Tax Credit monetaryitemtype Duration OtherComprehensiveIncomeLossNetOfTax L4 Common Stock, Shares, Outstanding sharesitemtype Instant CommonStockSharesOutstanding L5 Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest L6* Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect Credit monetaryitemtype Instant StockholdersEquityIncludingPortionAttributableToNoncontrollin ginterest Credit monetaryitemtype Duration TaxCutsAndJobsActOf2017ReclassificationFromAociToRetained EarningsTaxEffect Figure 1a.2 2

6 The instance document created using the modeling structure is provided here: 2017 Standard Label Equity Components [Axis] Preferred Label** Common Stock Additional Paid-in Capital Retained Earnings AOCI Attributable to Parent Noncontrolling Interest A1 M1 M2 M3 M4 M5 Reportwide Value L1 L2 L3 Net Income (Loss), Including Portion Attributable to Noncontrolling Interest Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition Other Comprehensive Income (Loss), Net of Tax Net income Compensation under stock-based plans, net Other comprehensive income, net of tax L4 Common Stock, Shares, Outstanding L5 L6* Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect Outstanding shares Consolidated Statement of Stockholders' Equity, Ending balance Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect Figure 1a.3 Notes: Figure 1a.3 provides information for one reporting period. The other reporting periods would be similarly structured. * Element L6* is proposed for inclusion in the 2019 taxonomy. ** Preferred Labels are the labels created and used by the company to show the line item captions in its financial statements. 3

7 Example 1b Disclosure of Changes in Other Comprehensive Income (Loss) Parent Entity XYZ Notes to Financial Statements Changes in Other Comprehensive Income (Loss) by Component For the Year Ended December 31, 2017 A1:M7 A1:M8 A1:M10 A1:M11 A1:M12 A1:M9 A1:M13 A1:M4 A1:M16 A1:M15 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for- Sale Securities Net Gain (Loss) Defined Benefit Pension Net Prior Service (Cost) Credit Net Transition Asset (Obligation) Total Foreign Currency Items Total Foreign Currency Items Noncontrolling Interest Gains and Losses on Cash Flow Hedges Total Total Beginning balance L5 $ (30,000) $ 20,000 $ (100,000) $ (80,000) $ 40,000 $ (140,000) $ 26,000 $ (124,000) L5 $ 3,500 $ 7,500 A1:M14 $ 11,000 L5, A1:M6 $ (113,000) Other comprehensive income before reclassifications L21 3,000 2,500 (2,300) (700) (3,000) 1,000 3,500 L21 2,500 1,000 A1:M5 3,500 L21 7,000 Amounts reclassified from accumulated other comprehensive income L22 (750) (1,500) 4,000 1,500 (1,000) 4,500 2,250 L22 (225) A1:M5 (225) L22 2,025 Net current-period other comprehensive income L3 2,250 1,000 1, (1,000) 1,500 1,000 5,750 L3 2, A1:M5 3,275 L3 9,025 Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings L6* 14,000 L6* 14,000 Net change in accumulated other comprehensive income L23* 2,250 1,000 1, (1,000) 1,500 1,000 19,750 L23* 2, A1:M5 3,275 L23* 23,025 Ending balance L5 $ (27,750) $ 21,000 $ (98,300) $ (79,200) $ 39,000 $ (138,500) $ 27,000 $ (104,250) L5 $ 6,000 $ 8,275 A1:M14 $ 14,275 L5, A1:M6 $ (89,975) Figure 1b.1 4

8 Standard Label Balance Type Data Type Period Type Element Name A1 Equity Components [Axis] stringitemtype Duration StatementEquityComponentsAxis M6 Equity Component [Domain] domainitemtype Duration EquityComponentDomain AOCI Including Portion Attributable to Noncontrolling Interest domainitemtype Duration AociIncludingPortionAttributableToNoncontrollingInterestMe mber M4 AOCI Attributable to Parent domainitemtype Duration OtherComprehensiveIncomeMember M7 M8 M9 M10 M11 M12 M13 Net Gain (Loss) from Cash Flow Hedges Attributable to Parent Net Investment Gain (Loss) Attributable to Parent Defined Benefit Plans Adjustment Attributable to Parent Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent Defined Benefit Plans Adjustment, Net Transition Attributable to Parent Foreign Currency Adjustment Attributable to Parent domainitemtype Duration NetGainLossFromDesignatedOrQualifyingCash FlowHedgesMember domainitemtype Duration NetUnrealizedInvestmentGainLossMember domainitemtype Duration DefinedBenefitPlansAdjustmentMember domainitemtype Duration DefinedBenefitPlansAdjustmentNetUnamorti zedgainlossmember domainitemtype Duration DefinedBenefitPlansAdjustmentNetPriorServi cecostcreditmember domainitemtype Duration DefinedBenefitPlansAdjustmentNetTransitio nassetobligationmember domainitemtype Duration TranslationAdjustmentMember M5 Noncontrolling Interest domainitemtype Duration NoncontrollingInterestMember M14 AOCI Attributable to Noncontrolling Interest domainitemtype Duration AociAttributableToNoncontrollingInterestMember M15 M16 Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest Foreign Currency Adjustment Attributable to Noncontrolling Interest domainitemtype Duration NetGainLossFromCashFlowHedgesAttributableT ononcontrollinginterestmember domainitemtype Duration ForeignCurrencyAdjustmentAttributableToNonc ontrollinginterestmember L3 Other Comprehensive Income (Loss), Net of Tax Credit monetaryitemtype Duration OtherComprehensiveIncomeLossNetOfTax L5 L21 L22 Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Other Comprehensive Income (Loss), before Reclassifications, Net of Tax Reclassification from Other Comprehensive Income, Current Period, Net of Tax L6* Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect L23* AOCI Including Portion Attributable to Noncontrolling Interest, Period Increase (Decrease) Credit sharesitemtype Instant StockholdersEquityIncludingPortionAttributableToNoncontrollin ginterest Credit monetaryitemtype Duration OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTa x Debit monetaryitemtype Duration ReclassificationFromOtherComprehensiveIncomeCu rrentperiodnetoftax Credit monetaryitemtype Duration TaxCutsAndJobsActOf2017ReclassificationFromAociToRetained EarningsTaxEffect monetaryitemtype Duration AociIncludingPortionAttributabletoNoncontrollingInterestPeriod IncreaseDecrease Figure 1b.2 5

9 2017 Standard Label Preferred Label** L5 L21 L22 L3 L6* L23* L5 Equity Components [Axis] Net Gain (Loss) from Cash Flow Hedges Attributable to Parent Net Investment Gain (Loss) Attributable to Parent Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent Defined Benefit Plans Adjustment, Net Transition Attributable to Parent Defined Benefit Plans Adjustment Attributable to Parent Foreign Currency Adjustment Attributable to Parent AOCI Attributable to Parent Foreign Currency Adjustment Attributable to Noncontrolling Interest Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest AOCI Attributable to Noncontrollin g Interest Noncontrolling Interest A1 M7 M8 M10 M11 M12 M9 M13 M4 M16 M15 M14 M5 M6 Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Other Comprehensive Income (Loss), before Reclassifications, Net of Tax Reclassification from Other Comprehensive Income, Current Period, Net of Tax Other Comprehensive Income (Loss), Net of Tax Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect AOCI Including Portion Attributable to Noncontrolling Interest, Period Increase (Decrease) Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest AOCI Including Portion Attributable to Noncontrolling Interest other comprehensive income, beginning balance Other comprehensive income before reclassifications Amounts reclassified from accumulated other comprehensive income (750) (225) (225) 2025 Net currentperiod other comprehensive income , Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings Net change in accumulated other comprehensive income other comprehensive income, ending balance Reportwide Value , Figure 1b.3 6

10 Notes: Figure 1b.3 provides information for one reporting period. The other reporting periods would be similarly structured. * All elements with asterisk (*) in this example are proposed for inclusion in the 2019 Taxonomy. ** Preferred Labels are the labels created and used by the company to show the line item captions in its financial statements. 7

11 Example 2a Accounting for TCJA, Incomplete, Provisional Company XYZ has recorded an income tax expense of $48.4 thousand[l7 ]. The effect of the Tax Cuts and Jobs Act of 2017 (TCJA) is $24.3 thousand[l8*] which is a provisional amount because the accounting for the effect of the TCJA is not yet complete[l9*], but a reasonable estimate can be made. This amount includes an estimated reduction in our deferred income tax liabilities of $30.8 thousand[l10*] as a result of the rate decrease included in the new tax legislation. This amount was partially offset by an estimated increase in income tax payable in the amount of $6.5 thousand[l11*] as a result of the transition tax on cash and cash equivalent balances related to accumulated earnings associated with our international operations. Figure 2a.1 8

12 The legend for the elements used to tag these facts is: Standard Label Balance Type Data Type Period Type Element Name L7 Income Tax Expense (Benefit) Debit monetaryitemtype Duration IncomeTaxExpenseBenefit L8* Provisional Income Tax Expense (Benefit) Debit monetaryitemtype Duration TaxCutsAndJobsActOf2017IncompleteAccountingProvisionalIncome TaxExpenseBenefit L9* Tax Cuts and Jobs Act of 2017, Accounting Complete [true false] booleanitemtype Instant TaxCutsAndJobsActOf2017AccountingComplete L10* Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit Credit monetaryitemtype Duration TaxCutsAndJobsActOf2017IncompleteAccountingChangeInTaxRateD eferredtaxliabilityprovisionalincometaxbenefit L11* Transition Tax for Foreign Earnings, Provisional Income Tax Expense Debit monetaryitemtype Duration TaxCutsAndJobsActOf2017IncompleteAccountingTransitionTaxForA ccumulatedforeignearningsprovisionalincometaxexpense Figure 2a.2 The instance document created using the modeling structure is provided here: Standard Label Preferred Label** Reportwide Value L7 Income Tax Expense (Benefit) Income Tax Expense L8* Provisional Income Tax Expense (Benefit) Provisional Income Tax Expense L9* Tax Cuts and Jobs Act of 2017, Accounting Complete [true false] Tax Cuts and Jobs Act of 2017, Accounting Complete L10* L11* Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit Transition Tax for Foreign Earnings, Provisional Income Tax Expense false Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit Transition Tax for Foreign Earnings, Provisional Income Tax Expense 6500 Figure 2a.3 9

13 Notes: * All elements with asterisk (*) in this example are proposed for inclusion in the 2019 Taxonomy. ** Preferred Labels are the labels created and used by the company to show the line item captions in its financial statements. 10

14 Example 2b Accounting for TCJA, Complete Company B recorded a charge of $33 million[l12*] in its income tax provision due to the measurement of its deferred income tax positions at the new corporate income tax rate of 21 percent (from 35 percent). The Company has completed the accounting for the impact of the tax reform provisions as of December 31, 2017[L9*][L13*]. Company B continues to finalize its analysis of the Tax Cuts and Jobs Act of 2017, but it is not expected to have a material impact on the financial results. Figure 2b.1 11

15 The legend for the elements used to tag these facts is: Standard Label Balance Type Data Type Period Type Element Name L9* Tax Cuts and Jobs Act of 2017, Accounting Complete [true false] booleanitemtype Instant TaxCutsAndJobsActOf2017AccountingComplete L12* Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) Debit monetaryitemtype Duration TaxCutsAndJobsActOf2017ChangeInTaxRateIncomeTaxExpenseBe nefit L13* Tax Cuts and Jobs Act of 2017, Accounting Complete, Date dateitemtype Instant TaxCutsAndJobsActOf2017AccountingCompleteDate Figure 2b.2 The instance document created using the modeling structure is provided here: Standard Label Preferred Label** Reportwide Value L9* Tax Cuts and Jobs Act of 2017, Accounting Complete [true false] Tax Cuts and Jobs Act of 2017, Accounting Complete true L12* Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) L13* Tax Cuts and Jobs Act of 2017, Accounting Complete, Date Tax Cuts and Jobs Act of 2017, Accounting Complete, Date Figure 2b.3 Notes: Description of the Tax Cuts and Jobs Act of 2017 includes numerical values that are always the same for all filers and not company-specific. Therefore, they have not been tagged in this example. * All elements with asterisk (*) in this example are proposed for inclusion in the 2019 Taxonomy. ** Preferred Labels are the labels created and used by the company to show the line item captions in its financial statements. 12

16 Example 2c Accounting for TCJA, Incomplete, With and Without Estimate The Tax Cuts and Jobs Act of 2017 (TCJA) was enacted on December 22, As of December 31, 2017, we have not completed our accounting for the tax effects of enactment of TCJA[L9*]. However, the Company has made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. Based on that estimate, we recognized a provisional amount of $400,000[L8*] which is included as a component of income tax expense. Of that provisional amount, $125,000[L14*] relates to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The one-time transition tax is based on the Company's total post-1986 earnings and profits which have been previously tax deferred. The Company recorded a provisional amount for the one-time transition tax liability for 5[ExL15] of its foreign subsidiaries resulting in an increase in income tax expense of $160,000[L11*]. The Company has not yet completed the calculation of the total post-1986 foreign earnings and profit for these foreign subsidiaries. The amount of unrecognized deferred tax liability related to remaining undistributed foreign earnings not subject to the transition tax was $120,000[L16*] and the related cumulative temporary difference as of December 31, 2017 was $350,000[L17*]. The Company could not however, provide a reasonable estimate of the effects of the one-time transition tax on the remaining 15[ExL18] of the Company's foreign subsidiaries. The Company continues to apply Accounting Standards Codification Topic 740 based on the provisions of the tax laws in effect immediately prior to the TCJA being enacted. The Company previously determined that the earnings and profits of these foreign subsidiaries were indefinitely reinvested and, as a result, no deferred taxes were recorded. The unrecognized deferred tax liabilities related to those subsidiaries were $200,000[L19*] and the cumulative difference was $900,000[L20*] as of December 31, Figure 2c.1 13

17 The legend for the elements used to tag these facts is: L8* Provisional Income Tax Expense (Benefit) Standard Label Balance Type Data Type Period Type Element Name Debit monetaryitemtype Duration TaxCutsAndJobsActOf2017IncompleteAccountingProvisionalInco metaxexpensebenefit L9* Tax Cuts and Jobs Act of 2017, Accounting Complete [true false] booleanitemtype Instant TaxCutsAndJobsActOf2017AccountingComplete L11* Transition Tax for Foreign Earnings, Provisional Income Tax Expense L14* Change in Tax Rate, Provisional Income Tax Expense (Benefit) ExL15 Number of Foreign Subsidiaries,Accounting Incomplete, Provisional L16* Undistributed Earnings of Foreign Subsidiary, Provisional Unrecognized Deferred Tax Liability L17* Provisional Undistributed Earnings of Foreign Subsidiary ExL18 Number of Foreign Subsidiaries, Accounting Incomplete, No Estimate L19* Undistributed Earnings of Foreign Subsidiary, Existing Unrecognized Deferred Tax Liability L20* Existing Undistributed Earnings of Foreign Subsidiary Credit monetaryitemtype Duration TaxCutsAndJobsActOf2017IncompleteAccountingTransitionTaxFor ForeignEarningsProvisionalIncomeTaxExpense Debit monetaryitemtype Duration TaxCutsAndJobsActOf2017IncompleteAccountingChangeInTaxRat eprovisionalincometaxexpensebenefit integeritemtype Instant NumberOfForeignSubsidiariesAccountingIncompleteProvisional Credit monetaryitemtype Instant TaxCutsAndJobsActOf2017IncompleteAccountingUndistributedAc cumulatedearningsofforeignsubsidiaryprovisionalunrecognizedd eferredtaxliability Credit monetaryitemtype Instant TaxCutsAndJobsActOf2017IncompleteAccountingProvisionalUndis tributedearningsofforeignsubsidiary integeritemtype Instant NumberOfForeignSubsidiariesAccountingIncompleteNoEstimate Credit monetaryitemtype Instant TaxCutsAndJobsActOf2017IncompleteAccountingUndistributedAc cumulatedearningsofforeignsubsidiaryexistingunrecognizeddefe rredtaxliability Credit monetaryitemtype Instant TaxCutsAndJobsActOf2017IncompleteAccountingExistingUndistri butedearningsofforeignsubsidiary Figure 2c.2 14

18 The instance document created using the modeling structure is provided here: Standard Label Preferred Label** Reportwide Value L8* Provisional Income Tax Expense (Benefit) Provisional Income Tax Expense L9* Tax Cuts and Jobs Act of 2017, Accounting Complete [true false] Tax Cuts and Jobs Act of 2017, Accounting Complete L11* L14* Transition Tax for Foreign Earnings, Provisional Income Tax Expense Change in Tax Rate, Provisional Income Tax Expense (Benefit) ExL15 Number of Foreign Subsidiaries,Accounting Incomplete, Provisional L16* L17* Undistributed Earnings of Foreign Subsidiary, Provisional Unrecognized Deferred Tax Liability Provisional Undistributed Earnings of Foreign Subsidiary ExL18 Number of Foreign Subsidiaries, Accounting Incomplete, No Estimate L19* L20* Undistributed Earnings of Foreign Subsidiary, Existing Unrecognized Deferred Tax Liability Existing Undistributed Earnings of Foreign Subsidiary false Transition Tax for Foreign Earnings, Provisional Income Tax Expense Change in Tax Rate, Provisional Income Tax Expense (Benefit) Number of Foreign Subsidiaries,Accounting Incomplete, Provisional 5 Undistributed Earnings of Foreign Subsidiary, Provisional Unrecognized Deferred Tax Liability Provisional Undistributed Earnings of Foreign Subsidiary Number of Foreign Subsidiaries, Accounting Incomplete, No Estimate 15 Undistributed Earnings of Foreign Subsidiary, Existing Unrecognized Deferred Tax Liability Existing Undistributed Earnings of Foreign Subsidiary Figure 2c.3 Notes: * All elements with asterisk (*) in this example are proposed for inclusion in the 2019 Taxonomy. ** Preferred Labels are the labels created and used by the company to show the line item captions in its financial statements. 15