Introduction to ASC 740/FAS 109: 3 Steps to Easier Tax Provision Preparation (Currently Unavailable)

Author: Shamen Dugger

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. Therefore, a three step process is recommended to mitigate the complexity surrounding ASC 740/FAS 109 rules and their respective application in preparing a basic corporate tax provision.

In this four-hour on-demand course, tax expert Shamen Dugger, Esq., CPA, will guide you through the three step process while explaining key ASC 740/FAS 109 concepts, such as permanent/temporary book vs. tax differences, deferred tax accounting, and valuation allowance. Ms. Dugger will use examples throughout the seminar to emphasize such ASC 740/FAS 109 concepts and their basic mechanics.

Lastly, Ms. Dugger will leverage the concepts and examples discussed to review the core schedules of a basic tax provision, including the taxable income schedule, deferred inventory, provision to return true-ups, tax reserves, tax attribute carryforwards, current/deferred tax expense calculation, rate reconciliation, tax account rollforward, and income tax footnote/financial statement impacts.

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.

Publication Date: October 2015

Topics Covered

• The scope of ASC 740/FAS 109
• The basic tax provision calculation, including current and deferred tax expense/(benefit)
• Permanent and temporary book vs. tax differences
• Deferred tax assets, deferred tax liabilities, and valuation allowance
• Mechanics of the basic tax provision, including deferred tax accounting
• Additional impacts to the basic tax provision calculation, including reserves (ASC 740-10/FIN 48),provision to return true-ups, tax attributes
• Schedules included in a basic tax provision, including the taxable income schedule, deferred inventory,provision to return true-ups, tax reserves, tax attribute carryforwards, current/deferred tax expense, rate reconciliation, tax account rollforward, income tax footnote/financial statement impacts

Learning Objectives

• Simplify complex ASC 740/FAS 109 concepts via a three step process
• Simplify complex tax provision preparation via a three step process
• Leverage a tax provision template for use in basic tax provision preparation

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Accounting (4 hours)

Program Prerequisites
None

Advance Preparation
None