Handbooks | April 2021

 

Insight

Handbook: Accounting for income taxes

Latest edition: KPMG explains the accounting for income taxes in detail, providing examples and analysis.

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5488

Ashby Corum

Ashby Corum

Partner, Accounting for Income Taxes, KPMG US

+1 313-230-3361

Kayreen Handley

Kayreen Handley

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-8288


This KPMG handbook is designed to assist you in understanding the application of ASC 740 and other pertinent sections of the FASB standard.

Applicability

  • All entities subject to income tax

Relevant dates

  • Effective immediately

Key impacts

This April 2021 edition incorporates:

  • Updated guidance on the Consolidated Appropriations Act, 2021 and the American Rescue Plan Act of 2021
  • New guidance on reliance on prior interactions with the taxing authority
  • Additional guidance on valuation allowance considerations associated with the sale of a subsidiary
  • New guidance on attribute reduction resulting from the emergence from bankruptcy
  • Guidance on the adoption of ASU 2020-10, Codification Improvements

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

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