Proposed elimination of Topic 995, "U.S. Steamship Entities"
FINANCIAL REPORTING INSIGHTS |
Topic 995 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification, “U.S. Steamship Entities,” addresses the accounting and reporting for a specific taxable temporary difference related to deposits in statutory reserve funds by U.S. steamship entities that arose in fiscal years beginning on or before December 15, 1992. The Department of Transportation program from which these statutory reserve deposits originated and the IRS provide a 25-year time frame in which to use the reserves or forfeit the tax deferral. Therefore, because the statutory funds have reached their 25-year limit, the FASB has proposed to eliminate Topic 995. Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 995, U.S. Steamship Entities – Elimination of Topic 995, is available for comment until August 28, 2017.