Accounting for Income Taxes (FASB ASC 740)
Accounting for income taxes has become extremely complex in recent years. WTAS’ professionals can help your business keep abreast of developments in this essential area, and help you with the necessary calculations for proper reporting of income taxes on your financial statements.
For more information, read:
How Does the American Recovery and Reinvestment Act of 2009 Affect Your Company's Accounting for Income Taxes?
Whenever new tax legislation is enacted (federal, state, or foreign), a company needs to evaluate the potential impact that these changes could have on its accounting for income taxes.... more
Income tax provisions, accruals and disclosures contained in financial statements require adherence to rules and guidelines prescribed by law and by generally accepted accounting principles and the Financial Accounting Standards Board. WTAS professionals with extensive experience with these rules coordinate with WTAS subject-matter specialists to help businesses with the financial reporting aspects of income taxes.
Accounting for Income Taxes
Our professionals can:
- Prepare tax-accrual workpapers, including computations of income tax provisions in annual and/or quarterly financial statements
- Review company-prepared tax-accrual workpapers before submission to independent auditors
- Determine financial reporting of tax effects of special transactions or circumstances, such as mergers and acquisitions, fresh-start accounting situations and foreign operations
- Evaluate and document asset valuation allowances
- Evaluate, select and implement income tax software, including automation of book-tax differences
- Help your business implement TaxStream, a leading tax provision software package
Accounting for Uncertain Tax Positions
We have extensive experience in advising public and nonpublic companies on tax accounting in situations involving uncertain tax positions. We can:
- Implement accounting for uncertain tax postions for nonpublic enterprises that have yet to adopt it, including identifying and cataloging uncertain tax positions and preparing supporting technical documentation
- Analyze positions, determine whether an issue is “more likely than not” sustainable, and measure the probability of meeting the recognition threshold
- Prepare draft footnote disclosures, including tabular reconciliation of the beginning and ending amounts of unrecognized tax benefits
- Assess on an ongoing basis any subsequent changes in judgment regarding the recognition and measurement of a tax position
- Analyze planning and remediation steps post adoption of the standard