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This session will take the building block concepts learned in the ASC 740 Introduction Course and attach practical applications to the concepts. We use multiple examples and scenarios to explain the concepts.

NOTE – It is recommended that you view the course ASC 740 Introduction – Accounting for Taxes Based on Income prior to taking this course.

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 Consider This Course?

Business owners and operational professionals
Accountants and Finance professionals and Internal auditors
Tax and Legal professionals

 

Learning Objectives

  • Identify how to book temporary vs. permanent differences.
  • Discover how to apply the concept of deferred tax assets and deferred tax liabilities to scenarios.
  • Identify and applying uncertainty for income tax.
  • Recognize outlining concepts that are embedded in tax based on income.
  • Discover how to apply recognition and measurement issues to examples.
Last updated/reviewed: February 24, 2020

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  3:28Introduction to ASC 740 Part 1: Practical Application For Accounting for Income Taxes Based on Income
  0:49Agenda
  8:43Purpose of Deferred Taxes
  15:27Temporary Differences
  8:17Examples 2 and 3 of Temporary Differences
  8:09ASC 740 Examples of Temporary Differences
  10:29Permanent Differences
  3:31Accounting Estimates vs Errors
  6:35Uncertainty in Income Taxes
  1:40Summary
Continuous Play
  1:07:08ASC 740 Part 1: Practical Application For Accounting for Income Taxes Based on Income
Supporting Materials
  PDFSlides: ASC 740 Part 1: Practical Application For Accounting for Income Taxes Based on Income
  PDFASC 740 Part 1: Practical Application For Accounting for Income Taxes Based on Income Glossary/Index
Review And Test
  quizREVIEW QUESTIONS
 examFINAL EXAM