Interim tax accounting considerations for recent legislative and global developments

In brief

As companies begin to focus on financial reporting in 2023, there are multiple variables to evaluate and assess. Concerns over the health of the US and global economy, elevated inflation, rising interest rates and geopolitical pressures may result in companies facing strong headwinds in forecasting profitability for 2023 and possibly beyond. At the same time, companies will need to account for many of the provisions of the Inflation Reduction Act (IRA) for the first time in their 2023 financial statements, while continuing to monitor global legislation in a rapidly evolving tax landscape. 

To assist companies in navigating the accounting for income tax impacts of the new legislation against the backdrop of a complex economic environment, this Insight highlights key areas of focus for interim reporting periods, including an overview of the fundamental framework, as well as an update on key global legislative developments as of the date of this publication.