ASC 740 Part 1: Practical Application for Accounting for Income Taxes Based on Income (Completed)

Date: Monday, December 7, 2020
Instructor: Lynn Fountain
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs

As entities consider the effects of COVID-19 on their global operations, consideration is needed in understanding the accounting implications of these developments. The many ramifications of the COVID-19 pandemic, and an entity’s response to these changes, may impact an entity’s determination of income tax accounting and related estimates in a variety of areas.

President Trump signed into law the CARES Act on March 27, 2020, making this a Q1 event for calendar year companies. ASC 740 requires that an entity must recognize the effect of a change in tax law or rates in the period that includes the date of enactment. The business provisions in the CARES Act need to be analyzed and the estimated impact of those provisions recorded as part of continuing operations during the quarter.

This course will provide a high level overview of the basic concepts of ASC 740, but we will go further and discuss the impact of the pandemic and the CARES Act on Accounting for Income Based on Taxes, specifically deferred tax assets and deferred tax liabilities.

This will be the first in a two part series that examines the basics of ASC 740 and how the COVID pandemic has impacted the accounting process.

Who Should Attend
Business owners and operational professionals, Accountants and Finance professionals and Internal auditors, and Tax and Legal professionals.

Topics Covered

  • High level overview of the basic concepts of ASC 740
  • Discuss the impact of the pandemic and the CARES Act on Accounting for Income Based on Taxes
  • Deferred tax assets and deferred tax liabilities
  • The tools to prepare basic tax provisions
  • Entities impacted by ASC 740 and defining a "tax based on income"
  • Examining discounting and reviewing concepts of changes in accounting estimates and errors along with temporary and permanent differences

Learning Objectives

  • Recognize a high level overview of ASC 740 and concepts of deferred tax assets, deferred tax liabilities, temporary and permanent differences and understanding of applying uncertainty for income tax
  • Identity the impact of COVID 19 on the various aspects of ASC 740 related to realizability of deferred tax assets and deferred tax liabilities
  • Recognize modification on net operation losses for Interim Reporting due to COVID
  • Recognize the overall impact of the CARES Act on accounting for income taxes
  • Recognize changes in balance sheet classification of deferred taxes due to COVID

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None

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