A roadmap to accounting for income taxes (2018) Bookmark has been added
A roadmap to accounting for income taxes (2018)
Insights and interpretations of the income tax accounting guidance in ASC 740 and IFRSs
Throughout the Roadmap, new guidance has been added, including a new appendix, “Frequently Asked Questions About Tax Reform,” and minor edits have been made to existing guidance to improve its clarity.
Guidance on accounting for income taxes
This Roadmap provides Deloitte’s insights into and interpretations of the income tax accounting guidance in ASC 740 and the differences between that standard and IFRS® Standards (in Appendix F). The income tax accounting framework has been in place for many years; however, views on the application of that framework to current transactions continue to evolve because structures and tax laws are continually changing. Therefore, use of this Roadmap, though it is intended as a helpful resource, is not a substitute for consultation with Deloitte professionals on complex income tax accounting questions or transactions.
The body of this Roadmap combines the income tax accounting rules from ASC 740 with Deloitte’s interpretations and examples in a comprehensive, reader-friendly format. The Roadmap’s organization mirrors the order of ASC 740 and reflects ASUs issued through September 30, 2018. Each chapter of this publication typically starts with a brief introduction and includes excerpts from ASC 740, Deloitte’s interpretations of those excerpts, and examples to illustrate the relevant guidance. The Roadmap includes pending content from recently issued ASUs, some of which may already apply to some entities or for which early adoption may be permitted. Readers should refer to the transition guidance in the ASC or in the relevant ASU to determine the effective date(s) of the pending guidance.
The numbering of items within each chapter is unchanged from the numbering used in the 2017 edition of the Roadmap; items that are new to the Roadmap have been inserted in a logical sequence in the appropriate chapter and assigned an item number with a letter suffix. An asterisk in the section title in the table of contents denotes items that are new or have been significantly amended since the previous edition of the Roadmap. Items without asterisks are unchanged from the previous edition. In addition, Appendix B has been added and contains responses to frequently asked questions (FAQs) about how an entity should account for the tax effects of the Tax Cuts and Jobs Act (the “Act”), signed into law by the president in December 2017, in accordance with ASC 740. However, the content in Chapters 1 through 13 has not been updated to address the impact of the legislation’s provisions on the accounting for income taxes under ASC 740. The updated content will be included in a subsequent edition.
Where applicable, we also include cross-references linking to other Roadmap paragraphs (links are in blue; as a reminder, use [alt] and [left arrow] to return to the paragraph you were originally reading).
We hope that you find this Roadmap a useful tool when considering the income tax accounting guidance.