FFC Supports Greater Corporate Tax Reporting

September 12, 2021

Friends Fiduciary has signed on to support an investor letter urging the Financial Accounting Standards Board (FASB) to prioritize the disaggregation of country-by-country income tax reporting information in notes to the financial statements. These concerns stem from investor need to gauge risks, assess value, and allocate capital. In order for investors to make informed investment decisions, income and tax information at the country-by-country level is needed to better understand a company’s financial, reputational, and economic risks. While companies have access to revenue, profit, tax, and other information on a country-by-country level, investors do not have access to tax information that in many ways affects material returns. With FASB’s goal to “provide decision-useful information to investors and other users of financial reports,” Friends Fiduciary will continue supporting the disclosure of this important information to investors.