ASC 740 Part 2: Practical Application for Income Taxes Based on Income
Author: Lynn Fountain
| CPE Credit: |
2 hours for CPAs |
This course is the last segment in a three-part series that focuses on what would constitute a tax based on income. This course 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.
Publication Date: November 2023
Designed For
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. Business owners and operational professionals, Accountants and Finance professionals and Internal auditors, Tax and Legal professionals.
Topics Covered
- Valuation Allowance
- Evidence to be Considered
- Weighting of Available Evidence
- Partial Valuation Allowance; Character of Income or Loss
- Accounting Estimates and Errors
- Tax Rate and Law Changes
- Changes in Tax Status
- Tax Accounting for Financial Instruments
- Tax Accounting for Business Combinations
- Intra-Period Allocations
Learning Objectives
- Recognize considerations for valuation allowances and impairments due to COVID-19
- 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
- Identify intra-period tax allocations
- Recognize the accounting for uncertainty in income tax
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic understanding of ASC 740.
Advance Preparation
None
