Accounting For Income Tax: Beyond the Basics of ASC 740

Mastering the Complexities of Tax Provision Valuations and Schedules

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, July 28, 2015

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Course Materials

This course will provide corporate tax professionals and tax advisers with an intermediate level treatment of necessary calculations, allocations, and schedule preparation and maintenance for reporting a company’s income tax provisions. Moving beyond the basic concepts of accounting for income tax, the panel will offer practical guidance on the issues tax professionals must address in identifying temporary differences in tax asset and liability reporting. The panel will discuss ordering effects and considerations in recording deferred taxes, as well as ongoing valuation requirements and challenges—and provide specific examples of calculations and schedules as real time illustrations to work paper and statement preparation.


Accounting for income taxes under ASC 740 remains one of the most complex and challenging tasks facing corporate accounting and tax professionals today. Among the specific issues requiring both expertise and judgment are intra-period valuations and the creating and maintenance of valuation allowances and quantifying “temporary” differences. Making forecasts and disclosures about deferred tax assets and liabilities is also particularly complicated and often a high-stakes process with significant effect on the company’s financial statements.

Key decisions must also be made about how to recover prior allowances, level of review of profitability forecasts, and public disclosure wording and detail (particularly if valuation methodology has changed from prior periods). Under ASC 740, such decisions are left to the tax professional’s judgment for the most part.

Listen as our panel provides a “beyond-the-basics” dive into the practical tasks and challenges corporate tax professionals face in preparing workpapers for income tax disclosures, offering real-time examples of calculations and schedules to support the technical disclosure requirements of ASC 740, and outline their best practices for making defensible decisions in this area.



  1. Identifying key challenges arising with income tax accounting
  2. Deciding on and calculating appropriate interim tax provision
  3. Valuing and reporting deferred tax assets
    1. Setting the valuation allowance
    2. Making judgment calls on positive and negative evidence
    3. Forecasting coming period income/loss
  4. Analyzing and reporting uncertain tax positions
  5. Reporting current and deferred income tax expense and balance sheet items
  6. Workpaper and schedule maintenance


The panel will give you a framework to make sound decisions in these and other problematic areas:

  • Reversing prior allowances against deferred tax assets: What procedures should be followed?
  • Forecasting future profits or losses: What constitutes a defensible prediction, given the size of profits or losses in prior periods?
  • Setting the valuation allowance: Does available evidence suggest it is more likely than not that some portion of the deferred tax allowance will not be realized?
  • Making disclosures: How can you viably explain changes in valuation methodology, and therefore changes in the valuation of carried tax assets?


Catherine Fox-Simpson
Catherine Fox-Simpson

Corner Office

Ms. Fox-Simpson has extensive experience in federal, multi-state and multi-national corporations and partnerships....  |  Read More

Yung Ling
Yung Ling

Director, Multinational Corporate Tax Services
Burr Pilger Mayer

Mr. Yung has extensive public accounting experience with a strong emphasis on corporations and other business...  |  Read More

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