Recent revelations regarding accounting abuses at Enron, WorldCom, and many other companies now make it clear that improved financial statement disclosure of book-tax differences also will increase transparency of financial accounting. Canellos and Kleinbard urge that Congress, the SEC, and the IRS consider adopting a single comprehensive requirement for the public disclosure of a detailed schedule reconciling public companies' book and tax income statements and balance sheets.
This article appears in the August 12, 2002 issue of TAX NOTES magazine, a weekly magazine covering federal, state, and international tax issues.You may quote from this article, or reprint it, but please notify us if you do so and please credit Tax Analysts.
Peter C. Canellos is a partner with Wachtell, Lipton, Rosen & Katz in New York. Edward D. Kleinbard is a partner with Cleary, Gottlieb, Steen & Hamilton in New York.
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Media Release 2002-8