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ASC 740 Insights

Tax and accounting highlights

In this recurring publication series, Deloitte's National Tax Accounting group delivers valuable insights to help corporate tax departments mitigate risk and identify potential opportunities. Each article highlights certain recent tax and accounting developments that may have accounting for income tax (ASC 740) implications.

Repatriation of earnings in a post-tax reform world

October 15, 2018

On December 22, 2017, President Trump signed into law the tax legislation commonly referred to as the Tax Cuts and Jobs Act (the 'Act') that created a fundamental shift in US cross-border taxation. The changes in tax law have many organizations reconsidering their reinvestment of foreign earnings.

Deloitte’s latest Tax Accounting Perspective discusses tax accounting considerations for cash repatriation and changes in management’s assertion of indefinitely reinvested.

Tax reform and SAB 118 considerations for return-to-provision adjustments

September 28, 2018

Tax provision processes include analyzing the impact of changes for “return-to-provision” items that result when estimates used for the provision are different than amounts reported on income tax returns. Companies should record the tax accounting impact in the period they identify the adjustments and may need to differentiate these from SAB 118 adjustments. After tax reform, adjustments for temporary differences that historically may not have impacted a company’s overall tax expense may now impact a company’s overall tax expense or benefit.

Deloitte’s latest Tax Accounting Perspective discusses the various impacts of return-to-provision and measurement period adjustments companies will need to consider as tax returns are finalized.

Additional resources

Some companies may need assistance to consider and quantify the implications of the tax reform bill in tandem with Deloitte Consulting services. Deloitte's Tax Reform Navigator (TRN) provides customized insights that can help companies prepare for tax reform. Using a company's actual financial data, Deloitte professionals can utilize the TRN to explore a full range of "what if" scenarios, including the consideration of tax rate reductions on deferred tax assets and liabilities.

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