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. 

Applicability

  • 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

 

 

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