Investors, Analysts Back Income Tax Accounting Disclosure Plan

Requiring companies to break down their reported lump-sum income tax payments by country or state would help analysts get long-sought insight into multinational companies’ future financial risks, investors and academics told US accounting rulemakers on Tuesday.

Analysts in particular want insight to distinguish between ongoing tax expense versus significant changes, such as rate hikes in a country or a company getting more aggressive with its tax planning, said Karen Korn, head of alternative product development at Fidelity Investments at a meeting of the Financial Accounting Standards Board’s main advisory panel.

“Every day, we’re sitting here trying to predict ...