New income tax disclosures under ASU 2023-09 are a novel challenge for tax departments, particularly when it comes to enhanced disclosure requirements around the tax rate reconciliation. In this recent webinar, GTM team members joined representatives from PowerPlan, a leading provider of software to asset-intensive organizations, to discuss how tax departments may need to change their reporting procedures to comply with ASU 2023-09 and how new technology can help streamline and expedite the process.
Hosted by Nikki McKinney, a GTM director specializing in tax accounting for regulated utility companies, the webinar also featured contributions from GTM Managing Director Mike DiBianca; GTM Director of Tax Automation Dante Colonna; PowerPlan Chief Strategy Officer Lee Watkins; and PowerPlan Product Manager Sebastian Cordoba.
The webinar touched on a range of important topics for tax departments, including a general overview of ASU 2023-09, a discussion of what tax departments need to know in order to meet the standard, and demonstrations of multiple technologies that can help tax professionals prepare income tax disclosures more efficiently. Read on for the full takeaways from the discussion.
ASU 2023-09, Explained
The new ASU 2023-09 incorporates several changes intended to address investor calls for more transparency when it comes to income tax disclosures on financial statements. For tax departments, the two changes that will most affect their processes concern new required disclosures:
- Enhanced disclosures around tax rate reconciliation
- Disclosure of income taxes paid
How prepared did the webinar participants feel for meeting the new disclosure requirements? Forty-three percent responded that they were just beginning to consider the impacts of ASU 2023-09, suggesting tax departments are still searching for solutions to meet these new disclosure requirements. Similarly, 32 percent of webinar participants reported that foreign jurisdictional reporting will be the most difficult element of the updates to meet.
Technological Solutions to ASU 2023-09
GTM has built a solution for ASU 2023-09 that works in tandem with tax provision solutions, taking the underlying data from the provision software and producing an ETR workbook that tax departments can manipulate and navigate with ease. During the webinar, GTM’s Dante Colonna gave a demonstration of this solution’s capabilities, showing how it can be paired with a tool like Power BI to directly compare the ETR with the underlying data, helping tax practitioners to review the provision software’s generated reports with ease.
Showcased in the webinar were results from Provision NXT, PowerPlan’s next-generation income tax software that is purpose-built for organizations with unique tax accounting needs. Sebastian Cordoba demonstrated how Provision NXT’s reporting capabilities can help tax departments quickly adapt to disclosure needs, on a discrete and jurisdictional level.
Handling New ASUs With Efficiency
Whether it’s with the GTM solution or PowerPlan’s software, tax departments need a provision plan that is dynamic and can respond to quick changes, especially when it comes to compliance under ASU 2023-09. Utilizing various technological solutions helps tax departments minimize manual time preparing, so they can spend more time analyzing data and reports.
To see a full demonstration of the ways GTM and PowerPlan can help your tax department comply with ASU 2023-09 and minimize headaches, watch the full webinar here.
