What it is
Income tax notes combine required items for every entity with relief for nonpublic ones. A nonpublic entity can describe the types of temporary differences instead of giving amounts, and can describe significant rate reconciling items instead of a numerical reconciliation.
ASU 2023-09 changes the rate reconciliation and income taxes paid disclosures. For entities other than public business entities it applies to annual periods beginning after December 15, 2025, with early adoption permitted. Pass-through entities and S corporations have their own disclosure needs.
When to use it
- When preparing the tax note of a private company.
- When ASU 2023-09 applies for the first time.
- For pass-through entities describing tax status and uncertain positions.
What’s inside
- Tax status and policies
- Components of expense
- Deferred taxes, valuation allowance and carryforwards
- Rate reconciliation and ASU 2023-09
- Uncertain tax positions
- Related items
Standard cited
This template follows ASC 740. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What can a nonpublic entity leave out?
The tax effect of each type of temporary difference (it must still describe the types) and, before ASU 2023-09, the numerical rate reconciliation (it must still describe the significant reconciling items). After ASU 2023-09 it gives a qualitative description of the categories and jurisdictions behind significant reconciling items instead of a tabular reconciliation. It also need not give the tabular rollforward of unrecognized tax benefits.
When does ASU 2023-09 apply?
For public business entities, annual periods beginning after December 15, 2024. For all other entities, annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements not yet issued or made available for issuance.
Is this checklist complete?
No. It is a prompt list paraphrased from the standard, not a substitute for the Codification or a full commercial disclosure checklist. Check each item against the current ASC text and any ASUs issued since the date you last checked, and add industry-specific requirements.
Related templates
- GAAP Disclosure Checklist (Private Company, Short Form)
- Disclosure Checklist: Debt (ASC 470)
- Disclosure Checklist: Related Parties (ASC 850)
Last updated 11/05/2026. All free templates.