Williams Cos., an interstate gas-pipeline asset-holder, has become the latest poster child for what can go wrong if a company is not focused on its tax provision. Failure to properly account for deferred tax liabilities from its investment in a limited partnership due to material weakness in internal controls resulted in the public company restating its 2011 financial results. The misstatement slashed off nearly $500 million of its shareholder value overnight- all because of a misstatement in accounting for income taxes.
Find out the importance of and potential pitfalls related to accounting for income taxes by downloading our white paper on ASC 740, "A Closer Look at Accounting for Income Taxes". By downloading our white paper, you will also receive our ASC 740 Fundamentals Series, a 10-part series offering a practical approach to meeting standard requirements. Download TaxOps ASC 740 white paper:
Contact Dan DeLau at 720.227.0065 or firstname.lastname@example.org with questions regarding ASC 740. See the CFO Report about the Williams Cos. at Provision Misstatement.