Handbook | April 2020

 

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 April 2020 edition incorporates:

  • Updates for ASU 2019-12 on income tax simplification
  • Guidance on accounting for the income tax implications of Brexit and the CARES Act
  • Additional guidance on income tax accounting for asset acquisitions

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

Spotlight on 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

 

 

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