Sales and Use Tax Reserves: Financial Accounting Standards Under ASC 450 and IAS 37

Establishing and Maintaining Accruals, Provisions, and Disclosures of Contingent Liabilities

Note: CLE credit is not offered on this program

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

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Conducted on Thursday, February 27, 2020

Recorded event now available

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Course Materials

This course will provide tax professionals with a review of current best practices for establishing, documenting, and maintaining reserves for uncertain sales and use tax positions of multinational companies using the most current interpretations of financial reporting under US General Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS).

Description

Under the terms of Accounting Standards Codification (ASC) 450 and International Accounting Standards (IAS) 37, the requirements have never been more intense for determining reserves for uncertain sales and use tax positions. Tax professionals must prepare for enforcement scrutiny with practical strategies and best practices for setting reserves.

Both ASC 450 and IAS 37 require companies to accrue for uncertain loss reserves, make disclosure of significant changes in estimates, and provide "early warning" disclosure for possible losses.

As the national economy continues to evolve, the pressure on companies to properly manage sales and use taxes globally must be balanced against the impact on the business' financials.

Listen as our panel of experienced sales tax advisers share their insights and current best practices for creating prudent reserves to account for uncertain sales or use tax positions.

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Outline

  1. Identifying tax uncertainties and initial decisions about a sales and use tax reserve
  2. The role of ASC 450 and IAS 37 in establishing and measuring a sales tax reserve
    1. Anticipating events that may impair assets or increase liabilities
    2. Audit detection considerations in recognizing a loss contingency
    3. ASC 450 and IAS 37 comparison
  3. Planning opportunities to mitigate sales and use tax loss contingencies

Benefits

The panel will review these and other key issues:

  • Reserve-related red flags in audit disclosures and financial statements
  • Financial accounting standards under ASC 450 and IAS 37
  • Audit detection considerations in recognizing a loss contingency

Faculty

Fader, Eric
Eric Fader
Tax Managing Director
BDO USA

Mr. Fader is a managing director in BDO’s State & Local Tax services practice with more than 25 years of...  |  Read More

Moore, Andrew
Andrew Moore
National Assurance Senior Manager
BDO USA

Mr. Moore's primary focus is IFRS related work including reviewing IFRS financial statements and reporting packages...  |  Read More

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