Instructor for this course

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: May 7, 2022

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

19 Reviews (103 ratings)Reviews

Anonymous Author
The course teaches hard and useful concepts for people without basic knowledge. I think having the slide notes could be improved with more pictures, illustrations and highlighting the notes where it is important for people to remember in mnemonic. This way it will help people to capture the big picture of the hard concepts that it is trying to convey.
Anonymous Author
The content was clear, well explained and easy to follow. The slides include the perfect amount of detail to highlight important aspects without being overwhelming.
Anonymous Author
This is another wonderful and informative course from my favorite instructor. I can't wait to take the 2 additional courses in this series.
Anonymous Author
This is a great class to give you a basis on ASC740 without getting too technical. It gives you a platform to build of of.
Anonymous Author
Good intro to ASC 740 and a good refresher for anyone that has not been involved in income tax accounting for a while.
Member's Profile
Lynn is an excellent instructor. I have taken several of her courses and have yet to be disappointed.
Anonymous Author
Good coverage of the theory. I'm looking forward to the practical applications in the next course.
Anonymous Author
Good explanation of deferred tax assets and liabilities. PDF of the slides is a useful reference.
Member's Profile
Excellent, comprehensive review exposing all aspects of ASC740 in a surprising amount of depth.
Anonymous Author
Great instructor and presentation! The material is explained in simple terms and informative.
Anonymous Author
The course was a solid overview of the topic, covering key relevant content areas.
Anonymous Author
This course narrows in on specific details and provides helpful real-life examples.
Anonymous Author
I enjoyed the course content and it was beneficial to understanding tax provisions
Member's Profile
great instructor. this is a good basics course for accounting for income taxes.
Member's Profile
This webinar is very educational. Thank you for the opportunity to view it.
Anonymous Author
Nice course. Course material was laid out well and presentation was concise.
Member's Profile
Helpful refresher course on the basics accounting for income taxes
Anonymous Author
Well structured and presented course that met its objectives.
Member's Profile
Very informative and was aligned with the test......


Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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
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