Accounting for income taxes is now a complex set of standards with computational difficulties and confusion. Particularly relating to private companies. A practical approach is shown to navigate the maze, simplify basic calculations, and clarify financial statements. Includes a review of the impact of the 2017 Tax Reform Act on calculations.
Learning Objectives
- Develop a practical approach for the application of the basic elements of income tax accounting under FASB codification 740
- We will dispel the myths surrounding deferred income taxes, and provide useful approaches and numerous computations
- Identify basic recurring transactions that result in book-tax differences for private companies, and how to accumulate the needed information to simplify the computations
- Recognize tax positions taken in tax returns and how those positions are to be evaluated for purposes of accruing the related tax benefits in the financial statements
Major Topics
- Sample Schedule M calculations
- Sample work papers for deferred tax computations
- Comprehensive two-year example and computations
- Review and analysis of recurring temporary differences
- Identification of the sources to compute cumulative temporary differences??
- Sample workpapers for analysis of tax positions
