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Companies Face New Income Tax Disclosures by Top Jurisdiction

May 11, 2022, 7:29 PM

Companies would have to break down in their financial statement footnotes the taxes they paid based on jurisdiction such as country or state under a plan in the works from US accounting rulemakers.

They wouldn’t have to list every country or state to which they owed income taxes, but they’d have to offer information about payments to “top jurisdictions,” members of the Financial Accounting Standards Board said Wednesday. Details about what “top jurisdictions” means need to be ironed out.

“Investors have told us they want to better understand where companies record revenue, generate profits, and pay taxes by geographic or ...