EITF ISSUE 06-3 – Some Implementation Guidance, by Dr. Tom Ratcliffe 03/25/08

In June 2006, the Emerging Issues Task Force [EITF] issued EITF Issue 06-3, entitled How Taxes Collected from Customers and Remitted to Governmental Authorities Should be Presented in the Income Statement [That Is, Gross versus Net Presentation], where the guidance in this Issue became effective for financial reports for interim and annual reporting in periods beginning after December 15, 2006 [calendar-year 2007], where the guidance could have been implemented earlier.   While the EITF guidance is not new, now that reporting entities, and practitioners associated with those entities, are “preparing and reporting” on 2007 financial statements, they are beginning to “notice” a new item on disclosure checklists related to the requirement for a policy note that is new for 2007, so “questions are being asked” about “how to do” the things that are required in EITF Issue 06-3.  

In the EITF Issue 06-3 Disclosing Certain Taxes.pdf document, you will find some information that we hope will be helpful to you in ensuring that we do not “miss” a required policy note disclosure in 2007 [and subsequent year] financial statements. 

THANK YOU!!! Tom R.

NOTE:  If you want to bypass the discussion and go straight to the policy note, just “go to the red” at the end of the discussion and you will see an example policy note related to implementing EITF Issue 06-3.

If this type information is helpful to you, and if you are interested in other things like this to “keep you current” related to “things that are new” in current-year financial statements, please just send an e-note to Susanne Richards = tomr@wilsonprice.com