Gain an improved understanding of the technical requirements under ASC 740 and better advise your clients.
ASC 740 calculations and reporting of income tax provisions require painstaking attention to detail and expertise that is often beyond the in-house capabilities of responsible parties at many public corporations and businesses looking to go public. ASC 740 standards define the threshold for recognizing deferred tax assets (future benefit) or deferred tax liabilities (future detriment). Because of the focus on assets and liabilities, ASC 740 largely pertains to the balance sheet and the changes in taxes payable and receivable over multiple periods. What is left over from period to period on the balance sheet is expensed. This course will provide an overview of the basic principles of ASC 740 around key principles of the accounting standard and provide illustrations for the various components that feed accurate calculation and reporting. An exploration of the impact ASC 740 has on financial statements and disclosures, as well as a demonstration of several advanced situations regarding compensation, business combinations, and transfer pricing, will round out this course.
Learning Objectives
- You will be able to identify the principles of ASC 740
- You will be able to differentiate between current and deferred income tax
- You will be able to recognize uncertain tax positions
- You will be able to identify tax valuation characteristics
What Is ASC 740?
ASC 740 is the set of standards responsible for accounting for income taxes and determining a company’s effective tax rate. A thorough understanding of ASC 740 requirements is essential for any accountant working in an organization adhering to Generally Accepted Accounting Principles.
One key part of ASC 740 compliance is determining whether or not an organization has uncertain tax positions — such as any interpretation of earnings that is less than what the IRS is likely to assess independently or uncover during an audit. This involves a comprehensive process of identification and measurement, both for the current fiscal year and for any years prior.
ASC 740 Training
Determining the taxable income of a business or nonprofit is never simple. For example, if a business is historically profitable and is expected to return to profitability soon, it can sustain a period of operating at a loss without its value being affected. Failing to properly consider these factors has the potential to put an organization into an uncertain tax position.
This program contains a basic overview of several topics relevant to the identification of uncertain tax positions. Students will learn:
- ASC 740 basics — What is it, how it works and who is responsible for adhering to it
- Income tax computation — How does ASC 740 require that current and deferred incomes taxes be calculated?
- Valuation allowances — What evidence must be weighed to determine an accurate valuation?
- Accounting for uncertainty — How likely is it that a tax position will be sustained on examination?
Lorman Education Services' ASC 740 training course has been developed based on the input of several recognized experts in the field of corporate tax strategy.
We are pleased to offer continuing education offerings for accounting professionals on a variety of topics. We keep all courses up-to-date with current laws, and we tailor them to the learning needs of busy working professionals. Browse our offerings today to get started!
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Identify and Discuss the Principles of ASC 740
- Total Tax Provision Calculation
- Jurisdiction-By-Jurisdiction Approach
- Balance Sheet Approach
- Types of Taxes
Calculating Current and Deferred Income Tax
- Calculation Objectives
- Permanent and Temporary Differences
- Illustrating an Income Tax Provision With Receivables, Deferred Taxes and Liabilities, Uncertain Tax Position, Valuation Allowance, and Tax Expense
Defining Uncertain Tax Positions
- Definition
- Identifying and Analysis of Uncertain Tax Positions
- Preparation of Uncertain Tax Position Disclosures
Valuation Allowance
- 'More Likely Than Not' Considerations
- Four Sources of Taxable Income
- Recognition of Deferred Tax Assets
Describing Income Tax Accounting for Advanced Situations
- Transfer Pricing as It Relates to ASC 740
- Stock-Based Compensation
- Impact of Business Combinations on ASC 740
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on June 8, 2023.
Call 1-866-352-9540 for further credit information.
- AIPB 2.0
- This program is acceptable for 2.0 CPEC(s) towards the CB designation through the American Institute of Professional Bookkeepers (AIPB).
Enrolled Agents 2.0
- In accordance with the standards set forth in Circular 230 section 10.6, CE credits have been granted based on a 50-minute hour. This program qualifies for 2.0 Continuing Education Credit(s) for enrolled agents.
CPE/NASBA - QAS Self Study 2.6 including Accounting 2.6
- Noggin Guru, Inc. dba Lorman Education Services and BankersHub is registered with the National Association of State Boards of Accountancy (NASBA) as a QAS Self Study sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org. For more information regarding administrative policies such as complaint and refund, please contact our offices at 866-352-9539. CPE Credit: Maximum Credit Hours: 2.6 each session (based on a 50 minute credit hour). You must attend at least 50 minutes to obtain credit. Field of Study: Accounting for 2.6 hours. Prerequisite: . Level of Knowledge: Intermediate. Teaching Method: Seminar/Lecture. Advance Preparation: None. Delivery Method: QAS Self Study. Please refer to the information in this advertisement for outline, course content and objectives. Upon completion of this course, you will receive a certificate of attendance. Final approval of a course for CPE credit belongs with each state's regulatory board.
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
Dan DeLau
TaxOps
- More than 35 years of experience with diverse international and domestic accounting and tax transactions within a U.S. corporate environment working for international accounting firms
- Associate Professor of Accounting, School of Business and Leadership, Colorado Christian University
- Former tax director of multiple public and private companies, each with extensive and complex operations throughout the U.S. and internationally
- Former U.S. tax director for a Fortune 100 company based in Lausanne, Switzerland
- Former EY partner and co-founding partner of TaxOps
- Can be contacted at [email protected]
Lindsay Haskell
TaxOps
- Director of corporate tax
- Specializing in corporate, income tax provision, and compliance for global brands
- Executes cross-functional compliance and planning integration across tax disciplines for a holistic understanding of a business’ tax position, including corporate, income tax provision, international, federal, state, and local tax compliance
- Private industry and public accounting experience
- Former EY
- Can be contacted at [email protected] or 720-227-0426
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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