The tax-related disclosures required for nonpublic entities, as defined in the ASC 740 glossary, differ in some respect from those required for public entities.

Definition from ASC 740-10-20

Nonpublic entity: An entity that does not meet any of the following criteria:
  1. Its debt or equity securities are traded in a public market, including those traded on a stock exchange or in the over-the-counter market (including securities quoted only locally or regionally).
  2. It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets).
  3. Its financial statements are filed with a regulatory agency in preparation for the sale of any class of securities.

A nonpublic entity is not required to numerically reconcile the statutory and effective rates (see FSP 16.5.2) or provide the approximate tax effect of each type of temporary difference and carryforward that gives rise to significant deferred tax assets and liabilities (see FSP 16.3.1). However, a nonpublic entity must disclose the nature of significant reconciling items as well as a description of the significant temporary differences and carryforwards in accordance with ASC 740-10-50-13.
Nonpublic entities are not required to include the following disclosures:
  • Tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the reporting date
  • The net difference between the tax bases and the reported amounts of assets and liabilities when they are structured as nontaxable entities

In addition, the requirements included in Figure FSP 16-1 apply only to SEC registrants.
Figure FSP 16-1
Presentation and disclosure requirements applicable only to SEC registrants
Disclose individual reconciling items that are more than five percent of the amount computed by multiplying pretax income by the statutory tax rate
Disclose the components of income (loss) before tax expense (benefit) as either foreign or domestic
Separately state for each major component of income tax expense the amounts applicable to US federal income taxes, to foreign income taxes, and to other income taxes
Disclose required information about tax holidays granted for a specified period in a foreign jurisdiction
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