Part 5: Understand Tax Provision Related Documents and Strategic Analysis Using the Basic Model (Currently Unavailable)

Author: Shamen Dugger

This course addresses the typical documentation related to the tax provision, as well as how to leverage the basic tax provision model from a strategic analysis perspective.

The key elements of a detailed prepared by client (PBC) request are reviewed to enable viewers to understand the documentation to request in preparing a tax provision. Also, the typical memoranda that emanate from the tax provision and are used to communicate results are evaluated. In addition, the tax provision model itself is evaluated in terms of its utility in forecasting tax related impacts from projections, changes in tax laws, and changes in company operations.

Publication Date: June 2014

Designed For
New Hires in Public Accounting and Industry, Experienced Hires Outside of Core Tax Compliance, Accounting and Finance Students (College and Masters Level) and Taxation Students (JD and LLM Levels).

Topics Covered

• Tax Provision PBC/IDR Preparation
• Tax Provision Memoranda
• Forecasting Using the Basic Tax Provision Model

Learning Objectives

• Identify what data to request in a PBC/IDR
• Recognize what documents may require preparation to communicate tax provision results
• Recognize how to use the basic tax provision model for forecasting purposes
• Identify Tailored Tax Provision PBC/IDR Data Requests
• Identify Tailored Tax Provision Memoranda/Documentation
• Recognize Financial Impacts Using the Basic Tax Provision Model
• Differentiate if the prior year tax provision should be included in the PBC/IDR
• Identify if the general ledger should be included in the PBC/IDR
• Recognize what to do before preparing the PBC/IDR
• Evaluate the next step once the tax provision is completed
• Recognize the written documents possibly found within the tax provision itself
• Identify which document is typically 1-2 pages long and is included with the tax provision deliverable
• Recognize which tax provision documentation the board of directors would be most interested in
• Describe where to start if company management requests forecasting from you
• Identify why startup companies are particularly interested in forecasting
• Differentiate typical forecasting drivers
• Describe what the acronym "PBC" stands for
• Describe what the acronym "IDR" stands for
• Identify the basic data included in forecasting
• Recognize what is typically included within a tax provision memorandum
• Recognize what is typically included within a transmittal letter
• Differentiate tax positions most likely to require an ASC 740-10 memorandum
• Identify if a PBC/IDR request should be tailored to a specific company's fact and circumstances
• Recognize if stock based compensation should be included as a separate line item in a PBC/IDR request

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None