Tax reform can result in lower net income

How can tax reform negatively affect our company's financial statements that are used my our investors/bankers? Companies with deferred tax assets might report surprisingly lower net income for 2017, even though they benefit from lower income tax rates under the new tax law in 2018.

The Financial Accounting Standards Board is moving quickly to give financial-statement preparers a targeted improvement in their accounting for effects of the tax-reform law.

See this related article for more detail

https://www.journalofaccountancy.com/news/2018/feb/when-tax-cut-is-a-profit-hit-201818156.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=08Feb2018