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

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 two-hour online seminar, 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. The core schedules comprising the basic tax provision will be made available to all participants as a template to use in tax departments or tax practices to facilitate tax provision preparation beyond the course.

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 seminar. Time will be provided for you to ask questions directly to Ms. Dugger via email during the program.

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
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None