This course contains the framework of the rules of ASC 740 and how these are manifested in accounting for income taxes, including the statement of financial position classification of deferred tax accounts and disclosures. The course includes case studies of actual scenarios.
Learning Objectives
• Calculate income tax expense for financial statement purposes.
• Identify and classify deferred tax assets and deferred tax liabilities.
• Identify how to complete a worksheet that provides documentation for the reporting and disclosure requirements and for the preparation of required journal entries.
• Determine how to account for operating loss carryforwards and tax credit carryforwards.
• Recognize how to compute the valuation allowance with consideration given to items that are allowed to reduce the need for an allowance.
• Apply concepts to practical situations.
Major Topics
• Permanent and timing differences
• Income tax expense
• Effective tax rate
• Current income tax liability
• Deferred income tax assets and liabilities
• Tax basis balance sheet
• Uncertain tax positions
• Tax benefits for carryforwards
• Reporting and disclosure under ASC 740
• ASC 740-20 intraperiod tax allocation
