As issuers scramble to understand what tax reform might mean for their businesses, the SEC has issued Staff Accounting Bulletin No. 118, which provides some very welcome clarity. By adding detailed information on the changes to existing tax law from the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, the SEC addresses changing U.S. corporate tax rates, business-related exclusions, deductions and credits.
Specifically, in Accounting Standards Codification (ASC) Topic 740, the SEC discusses accounting and disclosure guidance for income taxes under U.S. GAAP.
Read this SEC Staff Interpretation on tax reform for yourself.