Accounting for income taxes presents a unique challenge in financial accounting, often creating a discrepancy between pretax financial income and taxable income due to the differences between GAAP and tax regulations. This course is tailored to untangle these complexities. You will delve into the intricacies of ASC 740 Income Taxes, covering everything from the asset and liability method to uncertain tax position assessments. The course goes beyond theory, offering practical insight into the nuances of temporary differences, valuation allowances, and interim reporting. It also addresses asset acquisition and intra-period allocations, ensuring a comprehensive understanding of income tax accounting. By providing clear explanations and specific examples, the course equips you with the skills to reconcile the divergences between accounting standards and tax laws, transforming a daunting task into a manageable part of your financial expertise.
Learning Objectives
Upon successful completion of this course, participants will be able to:
• Recognize the basic principles of accounting for income taxes
• Identify recognition and measurement requirements for uncertain tax positions
• Recognize temporary differences and identify how these differences may arise
• Distinguish between permanent and temporary differences
• Identify method for computing deferred taxes
• Recognize basic rules for income taxes in interim reporting
• Recognize the reporting requirements for income taxes
Major Topics
Overview of ASC 740
Tax Position Assessment
Temporary Differences
Recognition and Measurement
Acquired Temporary Differences
Intraperiod Tax Allocation
Income Taxes in Interim Periods
Financial Statement Presentation and Disclosure
Transactions Directly between a Taxpayer and a Government
Separate Financial Statements of a Subsidiary
Inter-period Tax Allocation
Dividends on Restricted Stock and Options
Property Taxes
U.S. GAAP vs. IFRS
