Handbook | October 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 October 2019 edition incorporates:

  • Updates for the forthcoming ASU on simplification
  • Updates to interpretive guidance on changes in tax status in connection with transactions with shareholders and common control mergers
  • Additional guidance on intercorporate tax allocation and presentation of deferred tax asset and liabilities in separate financial statements
  • Removal of Appendix D: Tax Reform Supplement

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

Main contributors

Ashby Corum

Ashby Corum

Partner, Accounting for Income Taxes, KPMG US

Kayreen Handley

Kayreen Handley

Partner, Dept. of Professional Practice, KPMG US

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG US

Karmen Ward

Karmen Ward

Managing Director, Audit, KPMG US

 

 

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