New Conceptual Framework Chapter on ‘the Reporting Entity’ Proposed
Companies can provide comments on a FASB proposal that would define the concept of “the reporting entity” in the Conceptual Framework, the set of theoretical guidelines FASB uses to determine financial reporting standards. The board has issued proposed “Statement of Financial Accounting Concepts 2022- ED200, Concepts Statement 8, Conceptual Framework for Financial Reporting Chapter 2: The Reporting Entity,” to obtain public input, including on would should be in a description of the reporting entity and its focus. The proposed chapter was developed because there is no definition in the conceptual framework with regard to the concept of the reporting entity, the board said. In addition, the term “reporting entity” is used multiple times in existing concepts statements, and paragraph OB1 in Chapter 1 of Concepts Statement 8, Conceptual Framework for Financial Reporting, references a concept of the reporting entity. Because the conceptual framework is intended to be a coherent system of interrelated objectives and fundamental concepts, the board believes there is a need to develop a concept of the reporting entity. Comments are due by January 16, 2023.
IRS Issues 2023 Inflation Adjustments
The IRS has announced inflation adjustments for tax year 2023. The items adjusted for annual inflation include tax rate schedules, the standard deduction, and more than 60 other provisions. For tax years starting in 2023, the applicable dollar value used to determine the increased deduction amount for certain property under IRC section 179D(b)(3) is $2.68, increased (up to $5.36) by $0.11 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by more than 25%. The standard deduction amounts for 2023 are as follows:
- $27,700 for married couples filing jointly (up $1,800 from 2022)
- $13,850 (up $900) for single taxpayers and married individuals filing separately
- $20,800 (up $1,400) for heads of households.
For tax year 2023, the top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly). The other rates are as follows:
- 35% for incomes over $231,250 ($462,500 for married couples filing jointly)
- 32% for incomes over $182,100 ($364,200 for married couples filing jointly)
- 24% for incomes over $95,375 ($190,750 for married couples filing jointly)
- 22% for incomes over $44,725 ($89,450 for married couples filing jointly)
- 12% for incomes over $11,000 ($22,000 for married couples filing jointly).
Global ESG Rulemaker Defers Proposal on Agenda Priorities
The International Sustainability Standards Board (ISSB) deferred plans to issue a consultation document about its two-year agenda priorities until next year. The Request-for-Information (RFI) to solicit public input about the ISSB’s technical and research agendas, which was initially planned for this year, will now be issued during the first half of 2023, according to Oct. 18 discussions. The decision comes as the board wants to spend the remainder of the year focusing on finalizing IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2, Climate-related Disclosures, which will serve as a global baseline for environmental, social, and governance (ESG) disclosure rules. Final standards will be issued next year.