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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 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.

This course focuses on what would constitute a tax based on income. We 
discuss the applicability of ASC 740 to various types of entities including how to define
a tax based on income, temporary vs. permanent tax differences and the basic
objectives and principles of ASC 740.

Who Should Consider this Course?

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

Learning Objectives

  • Identify components of ASC 740 and types of taxes that are included
  • Discover how to identify taxes based on income
  • Recognize the applicability of ASC 740 based on the entities legal form
  • Explore the objectives and basic principles of ASC 740 
  • Discover how temporary to identify temporary and permanent differences.
  • Explore recognition and measurement principles
  • Identify between accounting estimates and errors
  • Explore how to account for uncertainty in income taxes
Last updated/reviewed: February 24, 2020

Included In Certifications

This course is included in the following Certification Programs:

18 CoursesFinancial Statement Preparation, Reporting and Auditing Certification

  1. Financial Statement Introduction
  2. GAAP Principles, Assumptions and Considerations
  3. GAAP Presentation of Financial Statements
  4. Management Discussion and Analysis (MD&A) Update
  5. Sarbanes Oxley (SOX) Overview
  6. Sarbanes-Oxley Section 302: ICFR
  7. XBRL (Extensible Business Reporting Language) Introduction to Basics - Updated
  8. XBRL - Connection to SOX 302/404 and Critical Roles
  9. Analyzing Financial Ratios - Solvency, Liquidity and Debt
  10. Analyzing Financial Ratios - Leverage
  11. Analyzing Financial Ratios - Performance And Efficiency
  12. Conducting An Audit In Accordance With GAAS - Part 1
  13. Conducting An Audit In Accordance With GAAS - Part 2
  14. Conducting An Audit In Accordance with GAAS - Part 3
  15. Introduction to Accounting for Income Taxes Based on Income
  16. Practical Application For Accounting For Income Taxes Based On Income Part 1
  17. Practical Application For Accounting For Income Taxes Based On Income Part 2
  18. FASB Codification Research System

3 Reviews (16 ratings)Reviews

5
Anonymous Author
Well structured and presented course that met its objectives.
5
Anonymous Author
The course was a solid overview of the topic, covering key relevant content areas.
4
Anonymous Author
I enjoyed the course content and it was beneficial to understanding tax provisions

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
  8:45Introduction to ASC 740 Accounting for Income Taxes
  10:54Scope of ASC 740
  7:25Defining Tax Based Income
  3:24Applicability Based on Entities Legal Form
  6:26Credits and Other Tax Incentives
  7:44Basic Principles of ASC 740
  9:00Temporary Differences
  5:40Computing DTA and DTL
  4:45Permanent Differences
  3:54Uncertainty in Income taxes
  3:51Summary
Continuous Play
  1:11:48ASC 740 Accounting for Income Taxes
Supporting Material
  PDFSLIDES: ASC 740 Introduction: Accounting for Income Taxes Based on Income
  PDFASC 740 Introduction: Accounting for Income Taxes Based on Income Glossary/ Index
Review And Test
  quizREVIEW QUESTIONS
 examFINAL EXAM