FASB / IASB - Potential tax implications of new revenue recognition standard 

August 5: Changes in the timing or amount of revenue recognized by some entities under the revenue recognition standard recently issued by the FASB and IASB may affect both the calculation of and financial reporting for income taxes as well as other types of taxes.

Changes in financial reporting for revenue may affect taxes by:

  • Accelerating taxable income because tax accounting methods change
  • Creating or changing existing temporary differences in accounting for income taxes for financial reporting purposes
  • Requiring revisions to transfer pricing strategies and documentation
  • Changing sales or excise taxes because revenue may be recharacterized between product and service revenue

Read an August 2014 report [PDF 505 KB] prepared by KPMG LLP: Defining Issues: New Revenue Recognition Standard: Potential Tax Implications

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