Steamship Entities Codification Topic Eliminated

 

Steamship Entities Codification Topic Eliminated

The FASB eliminates Steamship Entities Codification Topic by issuing Accounting Standards Update (ASU) No. 2017-15, Codification Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995. 

Who is Affected

The amendments affect all entities that have unrecognized deferred taxes related to statutory reserve deposits made on or before December 15, 1992.

History

The FASB issued ASU 2017-15 to supersede Topic 995 because its guidance is no longer relevant. FASB Statement No. 109, Accounting for Income Taxes, provided an option in the reporting of deferred taxes for steamship entities that had statutory reserve deposits that were made before December 15, 1992. The Department of Transportation and the Internal Revenue Service (IRS) provided a 25-year time frame in which to use the reserves or forfeit the tax deferral. The FASB decided that all steamship entities with statutory reserve funds should report all deferred taxes in accordance with Topic 740, Income Taxes. The guidance in Topic 995 is no longer relevant because statutory funds deposited on or before December 15, 1992, have reached the 25-year limit.

Effective Date

The amendments are effective for fiscal years and first interim periods beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period.

Transition

An entity applies the amendments on a modified retrospective basis through a cumulative-effect adjustment. Additionally, in the period of adoption, an entity provides disclosures about a change in accounting principle. The amounts and types of temporary differences for which a deferred tax liability had not previously been recognized is disclosed.

ASU 2017-15 can be found on CCH Accounting Research Manager at:

http://www.accountingresearchmanager.com/#/combined/2A032D89C6CFC9C4862581ED007C57FC/accounting/fasb/fasb-codification/fasb-accounting-standards-updates/accounting-standards-update-no-2017/elimination-of-topic-995

 

AUTHOR

Larry Koral

All stories by: Larry Koral