ASU 2016-16

The Board is issuing this Update to improve the accounting for the income tax
consequences of intra-entity transfers of assets other than inventory. Stakeholders
submitted the idea for this project as part of the Board’s initiative to reduce
complexity in accounting standards (the Simplification Initiative). The objective of
the Simplification Initiative is to identify, evaluate, and improve areas of generally
accepted accounting principles (GAAP) for which cost and complexity can be
reduced while maintaining or improving the usefulness of the information provided
to users of financial statements.