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
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