Effect of U.S. Tax Reform on an Entity’s Accounting for Income Taxes

Article Excerpt:

As you are no doubt aware, earlier this month the Senate passed its version of tax reform legislation. The House of Representatives previously passed its version of tax reform, and the two now need to be reconciled before tax reform can be enacted. The Senate and House versions of the proposed legislation each include significant reductions in the current corporate tax rates which, if enacted, will result in corporations having to re-measure their deferred tax assets and liabilities using the lower rates expected to be in effect when the temporary differences are estimated to reverse.