$500M Hit from a Tax Provision Misstatement

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.

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A Closer Look at ASC 740: Accounting for Income Taxes

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Contact Dan DeLau at 720.227.0065 or with questions regarding ASC 740. See the CFO Report about the Williams Cos. at Provision Misstatement.