Handbook   |   May 2019

 

Handbook: Accounting for income taxes

KPMG’s guidance on and interpretation of ASC 740. KPMG explains the accounting for income taxes in detail, providing examples and analysis. 

Applicability

  • All entities subject to income taxes

Relevant date

  • Effective immediately

Key impacts

Provides interpretive guidance on ASC 740, including illustrative examples and Q&As.

This May 2019 edition incorporates:

  • Updates for ongoing accounting questions that may arise after tax reform
  • Updates to interpretive guidance on several tax matters, including accounting for the tax effects of business combinations and contingent consideration, the federal effect of foreign branch temporary differences, and the effect of sequestration on refundable AMT credit carryforwards
  • Expansion of guidance to grantors of share-based awards to nonemployee service providers as a result of ASU 2018-17
  • Removal of guidance applicable before the adoption of various ASUs

Report contents

  • Temporary differences
  • Tax calculation
  • Valuation of deferred tax assets
  • Changes in tax laws, rates or status
  • Tax effects of business combinations
  • Foreign operations
  • Income tax issues associated with share-based payment arrangements
  • Financial statement presentation and disclosure
  • Other considerations
  • Examples of scheduling temporary differences
  • Accounting for investments in qualified affordable housing projects
  • Tax reform

Main contributors

Ashby Corum

Ashby Corum

Partner, Tax, KPMG (US)

+1 313-230-3361
Kayreen Handley

Kayreen Handley

Partner, DPP, KPMG (US)

+1 212-954-8288
Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG (US)

+1 212-909-5488

 

 

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