Course Information

Accounting for income taxes (governed by ASC 740) is highly complex because of temporary differences, valuation allowances, and uncertain tax positions. It has emerged as a critical compliance priority for all entities, especially public companies, driven by heightened regulatory scrutiny from the Securities and Exchange Commission (SEC). Tax-related errors are one of the leading causes of financial restatements. This course is designed to help you navigate complex income taxes and understand how companies manage compliance requirements. It provides a framework for accurately recognizing, measuring, and disclosing the tax implications of major corporate transactions and events in financial statements.

The course begins by introducing the fundamental concepts of accounting for income taxes, focusing on the objectives of tax recognition, future tax consequences, the asset and liability method, temporary versus permanent differences, and tax position evaluations. Additionally, the course reviews reporting requirements for temporary and permanent book-to-tax differences. Through practical application, you will learn to identify, calculate, and record current and deferred tax balances while exploring valuation allowances, uncertain tax positions, and essential presentation and disclosure requirements.

Recent, significant accounting updates have also been included.

1. Identify the core objectives and recognition principles of ASC 740
2. Recognize temporary differences and identify how these differences may arise
3. Identify current and deferred income tax expense components
4. Identify the two-step framework to recognize and measure uncertain tax positions
5. Recognize how to measure and record the effects of enacted tax rate changes and tax status changes
6. Identify critical components of valuation allowance provisions
7. Recognize the impact of business combinations and asset acquisitions on tax accounting
8. Identify disclosure requirements and updated rate reconciliation mandates
9. Identify the core accounting rules for reporting income taxes during interim periods
10. Recognize common financial statement disclosures related to income taxes