In March 2023, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) aimed at improving the accounting and disclosures for investments in tax credit structures. The news made headlines as it expanded the use of the proportional amortization method for certain tax credit equity investments.
For public business entities, the amendments are effective for fiscal years beginning after Dec. 15, 2023, including interim periods within those fiscal years. All other entities will have an extra year to adopt the changes, which will be effective for fiscal years beginning after Dec. 15, 2024, including interim periods within those fiscal years.
