A Practical Approach to ASC 740

General Description:

ASC 740, the financial accounting standard for computing and reporting income tax provisions, demands painstaking attention to detail. This course will provide an overview of the basic concepts of ASC 740 and the practical affect on financial statements and disclosures for recent changes in laws and regulations on the income tax provisions, deferred tax assets and liabilities, business combinations, and shareholder reporting.

Learning Objective:

After completing this course the participant will be able to:

• Summarize the principles of ASC 740, types of taxes, and the business application.
• Illustrate an income tax provision with receivables, deferred taxes and liabilities, uncertain tax position, valuation allowance, and tax expense.
• Recognize the difference between accounting estimates and errors, and the impact of ­variable tax rates on each component.
• Describe income tax accounting for stock-based compensation.
• Identify legal, regulatory, and situational factors that impact accounting for income taxes.
• Explain the impact of business combinations on ASC 740.
• Define transfer pricing as it relates to ASC 740.
• Communicate more effectively with auditors.
• Distinguish between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) tax accounting treatment.

Instructors:

Davinia Lyon, CPA, is a partner in federal tax at TaxOps Minimization, where she specializes in corporate and international tax and planning, including ASC 740, business strategy tax impact analysis, transfer pricing, foreign compliance and reporting, M&A transactions, and entity restructing. She earned a Master of Taxation Degree at the University of Denver. She previously worked at EY and then at Jacobs Engineering, where she was senior tax director of global tax accounting and transfer pricing during its $15B merger with CH2M.

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