The bill introduced as the Tax Cuts and Jobs Act (TCJA) will have a significant impact on taxes for businesses but it also comes with a host of accounting changes that are accounted for under guidance for income taxes (ASC Topic 740) that will affect interim and annual financial reporting that include the TCJA’s effective date, Dec. 22, 2017. These accounting changes will likely affect financial statements, so it’s critical that entities understand where accounting changes will need to be made as well the impact to their financial statements in order to communicate the reason for the changes to their financial statement users.
*CBIZ is a business consulting, tax and financial services provider and works closely with MHM (Mayer Hoffman McCann P.C.), an independent CPA firm providing audit, review and attest services. CBIZ and MHM are members of Kreston International, a global network of independent accounting firms.