There has been a lot of talk about the Tax Cuts and Jobs Act (TCJA) since it was signed into law. Most of the focus has been on how the new tax reform will impact tax planning and projections for individuals and companies. Financial reporting will also be affected in a major way. It’s important to consider whether you and your team are ready for the transition. Key highlights of the TCJA tax reform that will impact financial statements include: The reduction of the federal rate from 35 percent to 21 percent Limitations on the deductibility of interest Changes to
