# ASC 740-10-50: Income Taxes — Overall — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/740/10/#50-disclosure) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:52d0f01c55b5f1b11e9ef99c4bdc419c607ee2f5a47d1000d8093da89c991851 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 740-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/740/10/#50-disclosure) SEC content: no ##### [740-10-50-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:4e35367a99def8ef862959892b6bde01a912a7d691c1f371ba7cdb303107f7d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance on the financial statement disclosure requirements relating to [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") applicable to all entities. ##### [740-10-50-1A](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-1A) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:cc780719e13cabff74c42e7095501216c0f2b67213a5d3df5727fbaa937770a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) Nothing in this Subtopic is intended to discourage an entity from reporting additional information specific to its income tax rate reconciliation or income taxes paid to further an understanding of the entity and the related disclosures. #### Statement of Financial Position Related Disclosures ##### [740-10-50-2](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:28867819531fbe3d10e5aa45f240094e52456ed713ba24c5a5e9493c852de255 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The components of the net [deferred tax liability](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-liability "The deferred tax consequences attributable to taxable temporary differences. A deferred tax liability is measured using the applicable enacted tax rate and provisions of the enacted tax law.") or [asset](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") recognized in an entity's statement of financial position shall be disclosed as follows: 1. a The total of all deferred tax liabilities measured in paragraph [740-10-30-5(b)](https://asc.understandingaccounting.org/asc/740/10/#740-10-30-5) 2. b The total of all deferred tax assets measured in paragraph [740-10-30-5(c) through (d)](https://asc.understandingaccounting.org/asc/740/10/#740-10-30-5) 3. c The total [valuation allowance](https://asc.understandingaccounting.org/glossary/v/#valuation-allowance "The portion of a deferred tax asset for which it is more likely than not that a tax benefit will not be realized.") recognized for deferred tax assets determined in paragraph [740-10-30-5(e)](https://asc.understandingaccounting.org/asc/740/10/#740-10-30-5). The net change during the year in the total valuation allowance also shall be disclosed. ##### [740-10-50-3](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:7a065fa37e10c8085b16f97d11f5a39dda8ee75c6cc2dfb512555df26a638564 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose both of the following: 1. a The amounts and expiration dates of operating loss and tax credit [carryforwards](https://asc.understandingaccounting.org/glossary/c/#carryforwards "Deductions or credits that cannot be utilized on the tax return during a year that may be carried forward to reduce taxable income or taxes payable in a future year. An operating loss carryforward is an excess of tax deductions over gross income in a year; a tax credit carryforward is the amount by which tax credits available for utilization exceed statutory limitations. Different tax jurisdictions have different rules about whether excess deductions or credits may be carried forward and the length of the carryforward period. The terms carryforward, operating loss carryforward, and tax credit carryforward refer to the amounts of those items, if any, reported in the tax return for the current year.") for tax purposes 2. b Any portion of the valuation allowance for deferred tax assets for which subsequently recognized tax benefits will be credited directly to contributed capital (see paragraph [740-20-45-11](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11)). ##### [740-10-50-4](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:00e0527ed3558c08999afb480b571a1aa9b436ca4cfc3558acc6354a9f0570a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the [event](https://asc.understandingaccounting.org/glossary/e/#event "A happening of consequence to an entity. The term encompasses both transactions and other events affecting an entity.") that a change in an entity's tax status becomes effective after year-end in Year 2 but before the financial statements for Year 1 are issued or are available to be issued (as discussed in Section 855-10-25), the entity's financial statements for Year 1 shall disclose the change in the entity's tax status for Year 2 and the effects of that change, if material. ##### [740-10-50-5](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-5) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:0c172a22329ddbe2dcc51db00ae691ea2570ec50997c2e2b9ca5efc95fb579f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity's [temporary difference](https://asc.understandingaccounting.org/glossary/t/#temporary-difference "A difference between the tax basis of an asset or liability computed pursuant to the requirements in Subtopic 740-10 for tax positions, and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively. Paragraph 740-10-25-20 cites examples of temporary differences. Some temporary differences cannot be identified with a particular asset or liability for financial reporting (see paragraphs 740-10-05-10 and 740-10-25-24740-10-25-25), but those temporary differences do meet both of the following conditions: Result from events that have been recognized in the financial statements Will result in taxable or deductible amounts in future years based on provisions of the tax law. Some events recognized in financial statements do not have tax consequences. Certain revenues are exempt from taxation and certain expenses are not deductible. Events that do not have tax consequences do not give rise to temporary differences.") and carryforward information requires additional disclosure. The additional disclosure differs for public and nonpublic entities. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) An entity's [temporary difference](https://asc.understandingaccounting.org/glossary/t/#temporary-difference "A difference between the tax basis of an asset or liability computed pursuant to the requirements in Subtopic 740-10 for tax positions, and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively. Paragraph 740-10-25-20 cites examples of temporary differences. Some temporary differences cannot be identified with a particular asset or liability for financial reporting (see paragraphs 740-10-05-10 and 740-10-25-24740-10-25-25), but those temporary differences do meet both of the following conditions: Result from events that have been recognized in the financial statements Will result in taxable or deductible amounts in future years based on provisions of the tax law. Some events recognized in financial statements do not have tax consequences. Certain revenues are exempt from taxation and certain expenses are not deductible. Events that do not have tax consequences do not give rise to temporary differences.") and carryforward information requires additional disclosure. The additional disclosure differs for [public business entities](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") and entities other than public business entities. ##### [740-10-50-6](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-6) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:68c411d28fdff1794b703dba0bd59fb9ec1ba8c32c8d0d7d2a7f8ba09d783ff5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "An entity that meets any of the following criteria: Its debt or equity securities are traded in a public market, including those traded on a stock exchange or in the over-the-counter market (including securities quoted only locally or regionally). It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). Its financial statements are filed with a regulatory agency in preparation for the sale of any class of securities.") shall disclose the approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets (before allocation of valuation allowances). Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9)
Editor's Note: The content of paragraph 740-10-50-6 will be amended upon transition, together with a change in the heading noted below.
∙ > Public Business Entities
A [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") shall disclose the approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets (before allocation of valuation allowances). ##### [740-10-50-7](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-7) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:d9ee942bd6e5d85ed4b17e7fff2deaf1d931ce2efa0f6f71aae26c40bba39a22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [740-10-50-16](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-16) for disclosure requirements applicable to a public entity that is not subject to income taxes. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) See paragraph [740-10-50-16](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-16) for disclosure requirements applicable to a public business entity that is not subject to income taxes. ##### [740-10-50-8](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-8) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:5a7092710a73cd97f5413fb1324df24bf5f49a9ccadcab3a2b40144cd69129d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [nonpublic entity](https://asc.understandingaccounting.org/glossary/n/#nonpublic-entity "An entity that does not meet any of the following criteria: Its debt or equity securities are traded in a public market, including those traded on a stock exchange or in the over-the-counter market (including securities quoted only locally or regionally). It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). Its financial statements are filed with a regulatory agency in preparation for the sale of any class of securities.") shall disclose the types of significant temporary differences and carryforwards but may omit disclosure of the tax effects of each type. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9)
Editor's Note: The content of paragraph 740-10-50-8 will be amended upon transition, together with a change in the heading noted below.
∙ > Entities Other Than Public Business Entities
An entity other than a public business entity shall disclose the types of significant temporary differences and carryforwards but may omit disclosure of the tax effects of each type. #### Income Statement Related Disclosures ##### [740-10-50-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:2ffe798bfbb5df7a494846489c9ff575c2bc72735a72ea484b6785b396f826a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The significant components of income tax expense attributable to continuing operations for each year presented shall be disclosed in the financial statements or notes thereto. Those components would include, for example: 1. a [Current tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/c/#current-tax-expense-or-benefit "The amount of income taxes paid or payable (or refundable) for a year as determined by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues for that year.") 2. b [Deferred tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-expense-or-benefit "The change during the year in an entity's deferred tax liabilities and assets. For deferred tax liabilities and assets acquired in a purchase business combination during the year, it is the change since the combination date. Income tax expense (or benefit) for the year is allocated among continuing operations, discontinued operations, and items charged or credited directly to shareholders' equity.") (exclusive of the effects of other components listed below) 3. c Investment tax credits 4. d Government grants (to the extent recognized as a reduction of income tax expense) 5. e The benefits of operating loss carryforwards 6. f Tax expense that results from allocating certain tax benefits directly to contributed capital 7. g Adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity 8. h Adjustments of the beginning-of-the-year balance of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related [deferred tax asset](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") in future years. For example, any acquisition-date income tax benefits or expenses recognized from changes in the acquirer's valuation allowance for its previously existing deferred tax assets as a result of a business combination (see paragraph [805-740-30-3](https://asc.understandingaccounting.org/asc/740/805/#740-805-30-3)). ##### [740-10-50-10](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:89a3b30cc5d7335136d9c032764bcee9cae51c1fce4d6468a11b52095effc366 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount of [income tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/i/#income-tax-expense-or-benefit "The sum of current tax expense (or benefit) and deferred tax expense (or benefit).") allocated to continuing operations and the amounts separately allocated to other items (in accordance with the intraperiod tax allocation provisions of paragraphs [740-20-45-2 through 45-14](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-2) and [852-740-45-3](https://asc.understandingaccounting.org/asc/740/852/#740-852-45-3)) shall be disclosed for each year for which those items are presented. ##### [740-10-50-10A](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-10A) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:250153c0c5e4d676c13ad13481bea5b64f3afa86d91829175ee1d513ae503efa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign shall be disclosed for each annual reporting period. ##### [740-10-50-10B](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-10B) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:91c70054dba9e1a0410efbba99f4f544a67f8dafae4e05eb551a370ebea3c38a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign shall be disclosed for each annual reporting period. Income taxes on foreign earnings that are imposed by the jurisdiction of domicile shall be included in the amount for that jurisdiction of domicile (that is, the jurisdiction imposing the tax). #### Income Tax Expense Compared to Statutory Expectations ##### [740-10-50-11](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-11) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:717d1c3f988951cd9775b1a06ea67660ce909626b19cd0ecf087f57c6b1ab738 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reported amount of income tax expense may differ from an expected amount based on statutory rates. The following guidance establishes the disclosure requirements for such situations and differs for public and nonpublic entities. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9)
Editor's Note: The content of paragraph 740-10-50-11 will be amended upon transition, together with a change in the heading noted below.
> Rate Reconciliation between Income Tax Expense (or Benefit) and Statutory Expectations
The reported amount of income tax expense (or benefit) may differ from an expected amount based on statutory tax rates. The following guidance establishes the disclosure requirements for such situations and differs for public business entities and entities other than public business entities. ##### [740-10-50-11A](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-11A) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:d608d4275b14f3d7cb9d48e9f942afa146dacf9f9c2c38e40266ad2dcfdef7f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) The objective of these disclosure requirements is for an entity, particularly an entity operating in multiple jurisdictions, to disclose sufficient information to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective tax rate and the statutory tax rate. ##### [740-10-50-12](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-12) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:91e8d1e45962d5d6df69980905ffffe2068fc83387a831d758eac4601e4002fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall disclose a reconciliation using percentages or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. The statutory tax rates shall be the regular tax rates if there are alternative tax systems. The estimated amount and the nature of each significant reconciling item shall be disclosed. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9)
Editor's Note: The content of paragraph 740-10-50-12 will be amended upon transition, together with a change in the heading noted below.
∙ > Public Business Entities
A public business entity shall disclose a reconciliation for each annual reporting period, in accordance with paragraphs [740-10-50-12A through 50-12C](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-12A) , between the amount of reported income tax expense (or benefit) from continuing operations and the amount computed by multiplying the income (or loss) from continuing operations before income taxes by the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile. In circumstances in which a public business entity, as the parent entity, is not domiciled in the United States, the federal (national) income tax rate in that entity’s jurisdiction (country) of domicile shall normally be used in the reconciliation, and different rates shall not be used for subsidiaries or segments of the public business entity. When the rate used by a public business entity is other than the United States federal corporate income tax rate, the public business entity shall disclose the rate used and the basis for using that rate. The statutory tax rates shall be the regular tax rates if there are alternative tax systems. ##### [740-10-50-12A](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-12A) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:0102211604fd24ac8df571ab893973aaa8b854e21b55a5c1bf5a068cd633b643 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) For each annual reporting period, a public business entity shall disclose a tabular reconciliation, using both percentages and reporting currency amounts, according to the following requirements: 1. a The following specific categories shall be disclosed: 1. 1 State and local income tax, net of federal (national) income tax effect 2. 2 Foreign tax effects 3. 3 Effect of changes in tax laws or rates enacted in the current period 4. 4 Effect of cross-border tax laws 5. 5 Tax credits 6. 6 Changes in valuation allowances 7. 7 Nontaxable or nondeductible items 8. 8 Changes in unrecognized tax benefits. 2. b Separate disclosure shall be required for any reconciling item listed below in which the effect of the reconciling item is equal to or greater than 5 percent of the amount computed by multiplying the income (or loss) from continuing operations before income taxes by the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile. When disaggregating the following reconciling items by nature, an entity should consider the reconciling item’s fundamental or essential characteristics, such as the event that caused the reconciling item and the activity with which the reconciling item is associated. Reconciling items shall be presented on a gross basis unless specific guidance in (c) permits net presentation with a related reconciling item. 1. 1 If the reconciling item is within the effect of cross-border tax laws, tax credits, or nontaxable or nondeductible items categories, it shall be disaggregated by nature. 2. 2 If the reconciling item is within the foreign tax effects category, it shall be disaggregated by jurisdiction (country) and by nature, except for reconciling items related to changes in unrecognized tax benefits discussed in (c). If a foreign jurisdiction meets the 5 percent threshold, it shall be separately disclosed as a reconciling item. Within any foreign jurisdiction (regardless of whether it meets the 5 percent threshold), the reconciling item shall be separately disclosed by nature if its gross amount (positive or negative) meets the 5 percent threshold. 3. 3 If the reconciling item is not within any of the categories listed in (a), it shall be disaggregated by nature. 3. c For the purpose of categorizing and presenting reconciling items: 1. 1 Except for reconciling items related to changes in unrecognized tax benefits discussed in (c)(2), the state and local income tax category reflects income taxes imposed at the state or local level within the jurisdiction (country) of domicile, the foreign tax effects category reflects income taxes imposed by foreign jurisdictions, and the remaining categories listed in (a) reflect federal (national) income taxes imposed by the jurisdiction (country) of domicile. 2. 2 For reconciling items related to changes in unrecognized tax benefits: 1. i Reconciling items resulting from changes in judgment related to tax positions taken in prior annual reporting periods (such as subsequent recognition, derecognition, and change in measurement of unrecognized tax benefits) are reflected in the changes in unrecognized tax benefits category. 2. ii When an unrecognized tax benefit is recorded in the current annual reporting period for a tax position taken or expected to be taken in the same reporting period, the unrecognized tax benefit and its related tax position may be presented on a net basis in the category where the tax position is presented. 3. iii Reconciling items presented in the changes in unrecognized tax benefits category may be disclosed on an aggregated basis for all jurisdictions. 3. 3 The effect of cross-border tax laws category reflects the effect of incremental income taxes imposed by the jurisdiction (country) of domicile on income earned in foreign jurisdictions. When the jurisdiction (country) of domicile taxes cross-border income but also provides a tax credit on the same income during the same reporting period, the tax effect of both the cross-border tax and its related tax credit may be presented on a net basis in the effect of cross-border tax laws category. For example, the tax effect related to the global intangible low-taxed income and its related foreign tax credits may be presented on a net basis as one reconciling item in the effect of cross-border tax laws category. 4. 4 The effect of changes in tax laws or rates enacted in the current period category reflects the cumulative tax effects of a change in enacted tax laws or rates on current or deferred tax assets and liabilities at the date of enactment. See paragraph [740-10-55-231](https://asc.understandingaccounting.org/asc/740/10/#740-10-55-231) for an illustration of a tabular rate reconciliation disclosure. ##### [740-10-50-12B](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-12B) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:5965d65e5ab25aa3dab32495fe37c5fc0f0c218390f8ee007e2b328b57ee6df5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) A public business entity shall provide a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the effect of the state and local income tax category. For the purpose of identifying the states and local jurisdictions that make up the majority of the effect, a public business entity shall begin with the state or local jurisdiction that has the largest effect and in descending order add states or local jurisdictions with the next largest effect until the aggregated effect is greater than 50 percent. ##### [740-10-50-12C](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-12C) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:d7e7abe26ea98a5391e514d63d0b05d090d48eb974d7f25bd78b4e65575e257f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) A public business entity shall provide an explanation, if not otherwise evident, of individual reconciling items required by paragraph [740-10-50-12A](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-12A), such as the nature, effect, and underlying causes of the reconciling items and the judgment used in categorizing the reconciling items. ##### [740-10-50-13](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-13) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:cf906c226675d929f84ec58a0c696694019d9e2a7cc881140e2f1326a0e27b4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A nonpublic entity shall disclose the nature of significant reconciling items but may omit a numerical reconciliation. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9)
Editor's Note: The content of paragraph 740-10-50-13 will be amended upon transition, together with a change in the heading noted below.
∙ > Entities Other Than Public Business Entities
An entity other than a public business entity shall qualitatively disclose the nature and effect of specific categories of reconciling items listed in paragraph [740-10-50-12A(a)](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-12A) and individual jurisdictions that result in a significant difference between the statutory tax rate and the effective tax rate, but a numerical reconciliation is not required. See paragraphs [740-10-55-232 through 55-233](https://asc.understandingaccounting.org/asc/740/10/#740-10-55-232) for an illustration of a qualitative disclosure of rate reconciling items. ##### [740-10-50-14](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-14) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:851cedc36913e9288281fa6eb8881185421aed801eeabb6e6557a3edcfbefb84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If not otherwise evident from the disclosures required by this Section, all entities shall disclose the nature and effect of any other significant matters affecting comparability of information for all periods presented. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) If not otherwise evident from the disclosures required by this Section, an entity shall disclose the nature and effect of any other significant matters affecting comparability of information for all periods presented. #### Unrecognized Tax Benefit Related Disclosures ##### [740-10-50-15](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-15) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:2c4fc2cf34d7382ef2e57d1b014bb04dd7d811893f81c89f88b75d51c2635209 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All entities shall disclose all of the following at the end of each annual reporting period presented: 1. a [Subparagraph superseded by Accounting Standards Update No. 2009-06](https://asc.understandingaccounting.org/updates/asu-2009-06/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2009-06](https://asc.understandingaccounting.org/updates/asu-2009-06/). 3. c The total amounts of interest and penalties recognized in the statement of operations and the total amounts of interest and penalties recognized in the statement of financial position 4. d For positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date: 1. 1 The nature of the uncertainty 2. 2 The nature of the event that could occur in the next 12 months that would cause the change 3. 3 An estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. 5. e A description of tax years that remain subject to examination by major tax jurisdictions. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) An entity shall disclose the following at the end of each annual reporting period presented: 1. a [Subparagraph superseded by Accounting Standards Update No. 2009-06](https://asc.understandingaccounting.org/updates/asu-2009-06/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2009-06](https://asc.understandingaccounting.org/updates/asu-2009-06/). 3. c The total amounts of interest and penalties recognized in the statement of operations and the total amounts of interest and penalties recognized in the statement of financial position 4. d [Subparagraph superseded by Accounting Standards Update No. 2023-09](https://asc.understandingaccounting.org/updates/asu-2023-09/). 5. e A description of tax years that remain subject to examination by major tax jurisdictions. ##### [740-10-50-15A](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-15A) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:07ebcfcaf749f808aeb4d0e1fbb17f32c9569b18f0fc5cddf2a728c1d74fb1bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Public entities shall disclose both of the following at the end of each annual reporting period presented: 1. a A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period, which shall include at a minimum: 1. 1 The gross amounts of the increases and decreases in unrecognized tax benefits as a result of tax positions taken during a prior period 2. 2 The gross amounts of increases and decreases in unrecognized tax benefits as a result of tax positions taken during the current period 3. 3 The amounts of decreases in the unrecognized tax benefits relating to settlements with taxing authorities 4. 4 Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations. 2. b The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. See Example 30 (paragraph [740-10-55-217](https://asc.understandingaccounting.org/asc/740/10/#740-10-55-217)) for an illustration of disclosures about uncertainty in income taxes. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) A public business entity shall disclose both of the following at the end of each annual reporting period presented: 1. a A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period, which shall include at a minimum: 1. 1 The gross amounts of the increases and decreases in unrecognized tax benefits as a result of tax positions taken during a prior period 2. 2 The gross amounts of increases and decreases in unrecognized tax benefits as a result of tax positions taken during the current period 3. 3 The amounts of decreases in the unrecognized tax benefits relating to settlements with taxing authorities 4. 4 Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations. 2. b The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. See Example 30 (paragraph [740-10-55-217](https://asc.understandingaccounting.org/asc/740/10/#740-10-55-217)) for an illustration of disclosures about uncertainty in income taxes. #### Public Entities Not Subject to Income Taxes ##### [740-10-50-16](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-16) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:c82a1400440ad40af2bbab31fbc914903543f6c9132f3ed285ecdb02b82a5810 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity that is not subject to income taxes because its income is taxed directly to its owners shall disclose that fact and the net difference between the tax bases and the reported amounts of the entity's assets and liabilities. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9)
Editor's Note: The content of paragraph 740-10-50-16 will be amended upon transition, together with the change in the heading noted below.
> Public Business Entities Not Subject to Income Taxes
A public business entity that is not subject to income taxes because its income is taxed directly to its owners shall disclose that fact and the net difference between the tax bases and the reported amounts of the entity's assets and liabilities. #### Entities with Separately Issued Financial Statements That Are Members of a Consolidated Tax Return ##### [740-10-50-17](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:8ec8ea6b1d55890f8706d21d0b948c2f46f8c09e5bd433181519920a60d8737d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that is a member of a group that files a consolidated tax return shall disclose in its separately issued financial statements: 1. a The aggregate amount of current and deferred tax expense for each statement of earnings presented and the amount of any tax-related balances due to or from affiliates as of the date of each statement of financial position presented 2. b The principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to members of the group and the nature and effect of any changes in that method (and in determining related balances to or from affiliates) during the years for which the above disclosures are presented. ##### [740-10-50-17A](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-17A) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:133b032b79f856a97e9cc6849728a24d566f56a3a5af2cad0867430988051d80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that is both not subject to tax and disregarded by the taxing authority that elects to include the allocated amount of current and deferred tax expense in its separately issued financial statements in accordance with paragraph [740-10-30-27A](https://asc.understandingaccounting.org/asc/740/10/#740-10-30-27A) shall disclose that fact and provide the disclosures required by paragraph [740-10-50-17](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-17). #### Policy Related Disclosures ##### [740-10-50-18](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:bcc827b9d9bfed830d1edc0b95b3cd40f6b74810266504c7655e5fdb42b76d3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Acceptable alternative policy choices available to an entity require disclosure as follows in paragraphs [740-10-50-19 through 50-20](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-19) . ##### [740-10-50-19](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:3441e165148d5facbd0d07c6885968914b7f36f42197e602eabd5ca907dd742b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose its policy on classification of interest and penalties in accordance with the alternatives permitted in paragraph [740-10-45-25](https://asc.understandingaccounting.org/asc/740/10/#740-10-45-25) in the notes to the financial statements. ##### [740-10-50-20](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-20) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:e6d7e2c52c24c9c3441ca6987c69c64874e6366fd892d1ccde656473d7795b23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-10-25-46](https://asc.understandingaccounting.org/asc/740/10/#740-10-25-46) identifies the deferral method and the flow-through method as acceptable methods of accounting for investment tax credits. Whichever method of accounting for the investment credit is adopted, it is essential that full disclosure be made of the method followed and amounts involved, when material. #### Other Disclosures ##### [740-10-50-21](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-21) Pending content: no Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:6659248c2c7a73de6eededabe4302d7864361ec3dd94653056e2033f820b6d7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to disclosures required by this Subtopic, disclosures regarding estimates meeting certain criteria are established in paragraph [275-10-50-8](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-8) for nongovernmental entities. See Example 31 (paragraph [740-10-55-218](https://asc.understandingaccounting.org/asc/740/10/#740-10-55-218)) for an illustration of disclosure relating to the realizability of a deferred tax asset under the requirements of Topic 275. #### Statement of Cash Flows Related Disclosures ##### [740-10-50-22](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-22) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:a6998a926a0afcff983f1ffb23e5ddc2df879740163ef7f4a74cb0a3ac542e08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) For each annual reporting period, all entities shall disclose the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign. ##### [740-10-50-23](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-23) Pending content: yes Source downloaded (UTC): 2026-09-10T01:16:39.724Z to 2026-09-10T01:16:39.724Z Record version: sha256:937fda9e6acbf4fa97277f692eb4d56fef615bb09b21aa9eac8b04a465cf0db9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [740-10-65-9](https://asc.understandingaccounting.org/asc/740/10/#740-10-65-9) For each annual reporting period, all entities shall disclose the amount of income taxes paid (net of refunds received) to each individual jurisdiction in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received).