Introduction to ASC 740: Accounting for Income Taxes (Completed)

Date: Monday, November 18, 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

ASC 740, Income Taxes addresses how companies should account for and report the effects of taxes based on income. Unique characteristics of different tax jurisdictions across the United States can make it difficult to determine whether a particular tax is based on income. The existing guidance related to accounting for income taxes under ASC 740, did not change as a result of the passage of the Tax Jobs and Cuts Act.

ASC 740 establishes standards of financial and reporting for currently payable income taxes as well as deferred income taxes payable at some point in the future. The requirements of ASC 740 can significantly impact how a company reports its current and future income tax expense or benefit on the income statement, as well as how deferred tax assets or liabilities are reported on the balance sheet.

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

Topics Covered

  • What would constitute a tax based on income?
  • The applicability of ASC 740 to various types of entities
  • How to define a tax based on income
  • Temporary vs. permanent tax differences
  • Basic objectives and principles of ASC 740.

Learning Objectives

  • Identify the scope of ASC 740 and types of taxes that are included
  • Recognize how to define a tax based on income
  • Identify the applicability of ASC 740 based on the entities legal form
  • Describe the objectives and basic principles of ASC 740
  • Differentiate between temporary and permanent
  • Describe recognition and measurement principles
  • Differentiate between accounting estimates and errors
  • Identify how accounting for uncertainty in income taxes


Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites

Advance Preparation

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