VOLUME 29, NUMBER 2 • April 2018
The Journal of
Letter From the Editor
James B. Edwards
Impact of the Tax Cuts and Jobs Act on Accounting for Deferred Income Taxes
Karen M. Oxner, Thomas H. Oxner, and Ashley D. Phillips
The recently enacted Tax Cuts and Jobs Act lowers significantly the corporate tax rate,
among other provisions. Accounting for deferred tax assets and liabilities requires that effects
of a tax rate change on existing deferred tax assets and liabilities be brought into income
in the period of enactment. This article provides an overview of tax accounting for financial
reporting, as well as analysis of the existing net deferred tax position of the 30 Dow Jones
Industrial Average companies for 2016. The impact of the reduced tax rate on both the bal-
ance sheet and income statement are estimated in the article.
The New Accounting Standard for Revenue Recognition: Do Implementation Issues
Differ for Fortune 500 Companies?
Christine Jonick and Debra Benson
The purpose of this study is to discover how a sample group of Fortune 500 companies is
preparing for adoption of the new revenue recognition standard and how these companies
expect it will the impact their current operations. Existing research involved large samples of
public and private companies of all sizes. This exploratory investigation seeks to determine
if Fortune 500 companies are experiencing different implementation timelines or issues as a
result of their size. A survey of chief accounting officers was conducted to discover percep-
tions of how the new standard will impact various aspects of their respective companies.
The study also reports the progress that these companies have made in preparing for and
implementing the new revenue recognition standard. Findings indicate that these compa-
nies expect to change internal policies and procedures, yet do not anticipate that the new
standard will impact product and services offerings. The results of this pilot study, based on
a relatively small sample, begin to offer some insight into issues and perceptions of large
publicly-held companies and an serve as a starting point for more extensive research.