Handbook   |   November 2018


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. 


  • All companies

Relevant date

  • Effective immediately

Key impacts

Provides interpretive guidance on ASC 740, including illustrative examples and Q&As, and addresses specific taxation accounting issues.

This November 2018 edition incorporates:

  • Updates for ongoing accounting questions that may arise after tax reform
  • KPMG's Tax Reform Supplement, which provides an overview of several key provisions of the Act and guidance on enactment date accounting and other transition-only issues – e.g. SAB 118 measurement period issues
  • New interpretive guidance on several tax matters, including accounting for uncertainties in non-income-based taxes, allocating deferred tax expense related to debt with equity features, applying the benefits for losses method for intercorporate allocation, accounting for check-the-box elections, and recognizing deferred taxes for partnership investments
  • ASU 2018-09, amendments to ASC Subtopics 718-740 and 805-740
  • ASU 2018-06, elimination of reference to Comptroller of Currency’s Bank 202 from ASC 942
  • ASU 2018-02, reclassification of residual income tax effects from AOCI
  • ASU 2017-05, accounting for the derecognition of a nonfinancial asset and an in-substance nonfinancial asset
  • ASU 2017-04, accounting for goodwill
  • ASU 2016-16, accounting for intra-entity transfers
  • ASU 2016-02, accounting for leases
  • ASU 2016-01, accounting for financial instruments
  • ASU 2014-09, accounting for revenue from contracts with customers

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
  • Income tax issues asspciated with share-based payment arrangements (pre-ASU 2016-09)
  • 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



Subscribe to our newsletter

Receive timely updates on accounting and financial reporting topics from KPMG.

Accounting Research Online

Visit KPMG's accounting research website for additional resources for your financial reporting needs.