Handbooks | April 2022

 

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

Matt Drucker

Matt Drucker

Partner, Audit, KPMG US

+1 212-872-3584

Sungbae Jeon

Sungbae Jeon

Senior Manager , KPMG US

+1 404-222-7587


Our handbook is designed to assist companies and others in understanding the application of ASC 740, providing in-depth guidance on a wide range of implementation issues.

Applicability

  • All entities subject to income tax

Relevant dates

  • Effective immediately

Key impacts

Among other things, this April 2022 edition incorporates:

  • New guidance on the requirement to capitalize and amortize research and experimentation expenditures.
  • New guidance on patent box regimes.
  • Expanded guidance on accounting for tax receivable agreements.
  • Clarification of guidance on accounting for investment tax credits and tax credit investments.

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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