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Accounting for income tax and tax provisions

ASC 740 insights

In this monthly 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.

ASC 740 implications of accounting method changes – year-end considerations

​December 14, 2017

As a part of year-end tax planning and given the potential for tax reform as well as recent ASUs for revenue recognition and lease accounting, companies may be re-evaluating current tax accounting methods utilized by their domestic and foreign subsidiaries. As part of this analysis, companies should consider when the impact of these changes should be reported within the financial statements.

Deloitte’s latest Tax accounting perspective discusses the ASC 740 implications of accounting method changes, including the timing to record the impact of the change within the financial statements and other year-end considerations.

Tax reform bill includes a corporate tax rate reduction

November 17, 2017

If enacted, the tax rate included within the proposed bill would require companies to remeasure their deferred tax assets and liabilities as of the date of enactment. Any tax effects resulting from enactment would need to be accounted for in the reporting period of enactment.

This Deloitte Tax Accounting & Provisions perspective focuses on the change in rate and other proposed tax reform items that have immediate effects to deferred tax balances when enacted, and financial statement disclosures that may be includable in a calendar year-end company's financial statements ending December 31, 2017.

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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