Practical Application For Accounting For Income Taxes Based On Income Part 2 2 CPE

This course is the last segment in a three-part series that focuses on what would constitute a tax based on income. This segment is part two of our practical application segment to help the learner apply concepts reviewed in segment one – Introduction to ASC 740.  

ASC 740 deals with taxes based on income.  There are multiple concepts to examine when discussing ASC 740. This is part two in the series that focuses on these concepts. In this course we will review concepts such as valuation allowances, changes in tax rates, changes in entity tax status, evaluating income tax accounting for financial instruments and business combinations,  and accounting for uncertainty in income taxes.  

In general, when a tax is based on income, most items that enter into pretax accounting income enter into taxable income in the same year, and vice versa. Some events, however, are recognized for book purposes and tax purposes in different years. Over time, as these differences reverse, they eventually offset each other. The tax effects of these differences, referred to as deferred taxes, should be accounted for in the intervening periods. 

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.  

Who Should Attend: 

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

Prerequisites

No advanced preparation or prerequisites are required for this course, However, it is recommended to take the other courses in the series prior to completing this one.

Learning Objective

• Discover the valuation allowances and sources of taxable income.
• Identify when there is a change in valuation allowance.
• Identify changes in tax laws and rates.
• Recognize how to address changes of tax status in entity.
• Identify income tax accounting for financial instruments.
• Identify income tax accounting for business combinations.
• Explore intra-period tax allocations.
• Recognize the accounting for uncertainty in income tax.

Last updated/reviewed: March 22, 2024