Meeting FAS 109 Compliance Challenges

Tackling Allowance Releases, Return-to-Tax-Provision Reconciliations and Other Complex Issues

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

Conducted on Thursday, September 9, 2010

Recorded event now available

or call 1-800-926-7926
Course Materials

This course will prepare accounting advisors to make sound decisions about persistently complex compliance and reporting challenges arising from ASC 740 (FAS 109) on accounting for income taxes.


Eighteen years after its introduction, ASC 740 (previously FAS 109) on accounting for income taxes continues to vex U.S. companies and their advisors. For example, timing the release of valuation allowances and reconciling income tax provisions with returns remain complex and challenging.

The list of prickly issues continues including technical disclosure issues such as handling errors vs. changes in estimates. As states convert to single-sales apportionment, net deferred taxes could be overstated. Applying tax-rate changes (including phase-in periods) isn't always easy.

Meanwhile, the latest accounting guidance on goodwill impairments, business combinations and convertible debt instruments triggers even more confusion. Taxpayers and advisors need to revisit ASC 740/FAS 109 ongoing issues, with the benefit of experiences explained by veteran peers.

Listen as our panel of savvy tax and accounting advisors addresses persistent and timely FAS 109 compliance challenges and offers their insights for tackling those challenges.



  1. Persistent taxpayer challenges with ASC 740 (FAS 109)
    1. Tax return-tax provision reconciliations
    2. Return errors-estimate changes reconciliations
    3. Release of valuation allowances
    4. As states convert to single-sales apportionment, their net deferred taxes could be overstated
    5. Dealing with new accounting guidance for convertible debt instruments, affecting recognition and measurement of interest cost
    6. Recognizing changes in tax rates, including phase-in periods
    7. Effects of goodwill impairment test on deferred taxes
    8. Impact on FAS 141R on business combinations tax accounting and transaction costs
  2. Implications of compliance and disclosure decisions made for those challenges
  3. Best practices and alternative approaches


The panel will analyze these and other relevant issues:

  • Reconciling income tax returns with tax provisions, or errors with changes in estimates.
  • Timing of the release of valuation allowances.
  • Timing of the handling of tax rate changes, including phase-in periods.
  • Handling goodwill impairments and the effects of a goodwill impairment test.


Jim Parks
Jim Parks

Tax Partner
Burr Pilger & Mayer

He has 30 years of public accounting and tax experience involving tax strategies, business transactions, income tax...  |  Read More

Luke Coombs
Luke Coombs

Managing Director

He has more than 15 years of experience with business and individual tax engagements; accounting for federal, state and...  |  Read More

Andrew Cates, CPA
Andrew Cates, CPA

Tax Partner
Moss Adams

He has worked with the firm since 1995 on researching tax issues, reviewing returns and disclosures, and SoX 404...  |  Read More

Mark Young
Mark Young

Managing Director
Alvarez & Marsal Taxand

He has more than 11 years of tax advisory experience working with multi-national companies on tax planning and...  |  Read More

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