ASC 740 Part 1: Practical Application for Accounting for Income Taxes Based on Income (Completed)

Date: Tuesday, December 10, 2019
Instructor: Lynn Fountain
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs

Even at a basic level, ASC 740 (previously FAS 109), Accounting for Income Taxes, is a challenging pronouncement to master and apply in terms of preparing the corporate tax provision. ASC 740 addresses financial accounting and reporting for the effects of income taxes - federal, foreign, state and local - that result from an enterprise's activities during the current and preceding years. As a result of these efforts, companies are able to recognize current year taxes due or refundable and manage expected future tax consequences of deferred assets and liabilities.

From terms and definitions to calculations and reporting, the financial accounting standard for calculating and reporting income tax provisions demands close attention. In part one of this series, we will examine some of the basic concepts to ensure practical application for accounting for income taxes based on income.

All tax professionals that want a basic understanding of ASC 740/FAS 109 concepts and the tools to prepare basic tax provisions will benefit from this course. These concepts include understanding entities impacted by ASC 740 and defining a “tax based on income”, examining discounting and reviewing concepts of changes in accounting estimates and errors along with temporary and permanent differences.

Who Should Attend
Business owners and operational professionals, Accountants and Finance professionals and Internal auditors, and Tax and Legal professionals.

Topics Covered

  • Entities impacted by ASC 740
  • Defining a "tax based on income"
  • Examine discounting and reviewing concepts of changes in accounting estimates
  • Temporary vs. permanent tax differences

Learning Objectives

  • Identify how to book temporary vs. permanent differences
  • Recognize and apply the concept of deferred tax assets and deferred tax liabilities to scenarios
  • Identify and apply uncertainty for income tax
  • Recognize how to outline concepts that are embedded in tax based on income
  • Identify how to apply recognition and measurement issues to examples and errors


Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites

Advance Preparation

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