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Perspectives

A roadmap to accounting for income taxes (2017)

Insights and interpretations of the income tax accounting guidance in ASC 740 and IFRSs

Throughout the roadmap, new guidance has been added, examples related to some of the guidance included in the previous edition have been added or substantively revised, and minor edits have been made to existing guidance to improve its clarity. This edition does not include updates related to tax reform legislation that was recently proposed by Congress but had not been enacted before this edition was published. If a final bill is enacted, updated guidance addressing the impact of the legislation’s provisions on the accounting for income taxes under ASC 740 will be included in a subsequent edition.

Guidance on accounting for income taxes

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, 2017. 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.

Throughout the Roadmap, new guidance has been added, examples related to some of the guidance included in the previous edition have been added or substantively revised, and minor edits have been made to existing guidance to improve its clarity. This edition does not include updates related to tax reform legislation that was recently proposed by Congress but had not been enacted before this edition was published. If a final bill is enacted, updated guidance addressing the impact of the legislation’s provisions on the accounting for income taxes under ASC 740 will be included in a subsequent edition. The numbering of items within each chapter is unchanged from the numbering used in the 2016 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.

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.

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