ASC 740 is a complex financial accounting standard that affects all C-corporations required to produce generally accepted accounting principles (GAAP) financial statements. From terms and definitions to calculations and reporting, the standard for computing and reporting income tax provisions demands painstaking attention to detail. As a result of these efforts, companies are able to recognize current year taxes due or refundable, and manage expected future tax consequences of deferred assets and liabilities.
TaxOps is deeply experienced in every aspect of ASC 740, including:
Accounting for income tax uncertainties;
International operations; and
Sarbanes-Oxley Act 404 documentation; and
IAS 12, the IFRS equivalent to ASC 740.
ASC-740 addresses financial accounting and reporting for the effects of
income taxes – federal, foreign, state and local – that result from an
enterprise’s activities during the current and preceding years. ASC-740
is the Financial Accounting Standards Board (FASB) Accounting Standards
Codification Topic (ASC) 740, Income Taxes. ASC-740 includes FASB
Interpretation No. 48 (FIN 48) – Accounting for Uncertainty in Income
Taxes, an interpretation of FASB Statement (FAS) No. 109.
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To further the discussion, please contact John Monahan, lead partner for TaxOps Compliance and Provision practice. He can be reached at 720.227.0060 or JMonahan@TaxOps.com.
We are pleased to provide you with The Path to ASC-740 Compliance, 10-steps to compliance. We hope this material provides you with insight into a complex financial accounting standard that affects all C-corporations required to produce GAAP financial statements. Please feel free to contact John Monahan, partner with TaxOps and ASC-740 specialist, at 720-227-0060 or JMonahan@TaxOps.com with any questions or for additional information.
Intermediate ASC-740 Resources
Want to dig deeper? Download our white paper, A Closer Look at ASC-740, and subscribe to the Fundamentals Series.
Explore how accounting for uncertain tax positions can help smooth out tax liabilities and improve financial statement transparency in A Closer Look at Accounting for Income Taxes. Get the File »
The ASC-740 Fundamentals Series walks readers through a step-by-step process for preparing an income tax
analysis. Everything from basic terminology and definitions through
calculating uncertain income tax positions is covered in this 10-part
Our largest liability is deferred income taxes and we have a complicated tax provision. Being a public company and having the ultimate responsibility for our financial reporting, I take comfort knowing that Paul Hocevar is my tax wingman. Paul and I have worked together for the last four years and his experience with and knowledge of the intricacies of ASC 740 (FAS 109) and the U.S. tax code is superlative.
W. Anderson Bishop, CFO Hallador Energy Company
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