Brief Overview of Tax Cuts and Jobs Act of 2017 Impacts on Tax Provisions
The Tax Cuts and Jobs Act of 2017 (TCJA) changed a variety of tax law sections that have a flow-through impact on the tax provision in the financial statements. Some of the most significant changes, include:
- Staff Accounting Bulletin 118 (SAB118). SEC SAB 118 and related FASB ASU 2018-05 allowed companies to finalize and fully record the impact of TCJA on their 2017 financials, develop reasonable estimates of the impact, or record income tax accounting based on tax law in effect before the December 22, 2017 effective date. The rules required that those who used either of the last two options finalize and record the actual impact within one year of the effective date.
- Naked credit and valuation allowance considerations. Companies may need to reassess the amount of valuation allowance needed if a “naked credit” deferred tax liability (DTL) exists.
- GILTI and FDII. Year-end calculations of these amounts will require taxpayers to calculate the value of U.S. and foreign depreciable assets using the Alternative Depreciation System (ADS).
- ASC Topic 740-30-25 (Formerly: APB 23). The TCJA’s provisions related to deemed repatriation of earnings accumulated in overseas subsidiary has necessitated a revisiting of certain assertions that are the basis of financial statement presentation of accumulated overseas earnings.
- Return to Provision (RTP) Adjustments. This calculation was affected by the TCJA’s reduction in corporate tax rates. Because of the rate reduction from 35 percent to 21 percent effective January 1, 2018, a calendar year-end corporation’s tax rate will be affected by any RTP temporary adjustments.
- Fiscal-Year Filers. Fiscal-year filers who extended their returns have a variety of provisions to consider when preparing their tax returns. This includes a blended rate to reflect the months when the 35 percent rate applied and those covered by the 21 percent rate.
- Rate Reconciliation. Several provisions in the TCJA will affect the rate reconciliation in this year-end that have not had an effect in the past.
For a more detailed discussion, we recommend that you download our recent whitepaper, “2018 ASC 740 Year-End Considerations” here.
The complexities of these tax reform changes and their impact on your situation should be discussed with your tax advisor as soon as possible. Call us at 716. 847.2651 or connect with us by clicking here.View full article
It has been a busy year for the Financial Accounting Standards Board (FASB). A number of accounting rule changes have been promulgated that will have a flow-through impact on the tax provision in the financial statements. These include:
- ASC 606 Revenue Recognition. New rules are in effect that require companies to use a 5-step process to determine when revenue should be recognized. Once the GAAP treatment is determined, the effect of the changes must also be reflected in the tax provision.
- ASU 2015-17 Classification of all deferred tax liability and assets as non-current. This change became effective for all entities effective for periods beginning after December 31, 2017.
- ASU 2016-09 Stock Compensation. All excess tax benefits or deficiencies must be treated as tax expense in the income statement without regard to any reduction in current-period taxes payable caused by the benefits.
- ASU 2016-16 transactions other than inventory. For years beginning after December 15, 2018, all entities are required to use current accounting for intercompany transactions with the exception of inventory transactions.
- ASU 2018-2 Reclassification of disproportionate tax effects on OCI. Effective for years beginning after December 15, 2018, companies can elect to reclassify “trapped” taxes from accumulated other comprehensive income (OCI) to retained earnings.
- ASU 2018-11 Leasing Standard. This guidance provided updates to ASC 842, Accounting for Leases. It focused on two main areas: transitioning to the new standard and separating the components of a contract.
For a more detailed discussion, we recommend that you download our recent whitepaper, “2018 ASC 740 Year-End Considerations” here.View full article
New York, NY, May 17, 2014 --(PR.com)-- The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, has announced today that Samuel C. DiSalvo, Tax Director, Freed Maxick CPAs, P.C. will speak at the Knowledge Group’s webcast entitled: “ASC 740: Income Tax Accounting for 2014.” This event is scheduled for October 16, 2014 from 12:00pm – 2:00pm (ET).
For further details, please visit: http://theknowledgegroup.org/event_name/asc-740-income-tax-accounting-for-2014-live-webcast
About Samuel C. DiSalvo
Samuel C. DiSalvo is a Director with Freed Maxick’s Tax Practice. Prior to joining the Firm, Sam spent over 25 years in the accounting profession with both Big Four firms and private industry. During this time, he gained significant experience with mergers and acquisitions, corporate taxes and compliance, and financial statement tax accounting.
Sam is responsible for providing day-to-day tax advisory services, coordinating, and supervising the preparation of the corporate income tax returns, and reviewing the annual and quarterly provisions for income taxes for both publicly held and privately held corporations. Sam concentrates his practice on joint venture tax matters, merger and acquisition issues, and corporate taxes as well as ASC 740 issues such as purchase accounting, valuation allowances, and international issues. He also has significant experience in identifying tax opportunities in connection with the due diligence reviews of companies’ prior year tax returns.
About Freed Maxick CPAs, P.C.
Freed Maxick CPAs, P.C. is one of the largest accounting and consulting firms in Upstate New York and a Top 100 largest CPA firm in the United States. Serving SEC companies, closely held businesses, governmental and not-for-profit clients across New York as well as nationally and internationally, Freed Maxick mobilizes high-performance professionals to guide client growth, compliance, and innovation. They specialize in the healthcare, manufacturing, real estate, banking, agribusiness and private equity sectors and have more than 280 professional and administrative personnel, with offices in Buffalo, Batavia, Rochester and Syracuse, New York. Freed Maxick’s Tax Practice is the largest of any accounting firm in Upstate New York with over 110 personnel, including 12 tax directors. Freed has built a significant SEC Practice through years of experience in auditing a wide variety of companies and has extensive knowledge in handling public and private capital transactions.
In this two-hour Live webcast, a panel of distinguished professionals and thought leaders will help Finance Executives, CPAs, Attorneys, Enrolled Agents, Tax Practitioners, and other related professionals understand the important aspects of this significant topic. They will provide an in-depth discussion of the significant issues related to tax accounting rules and latest developments in ASC 740. Speakers will also offer best practices in developing and
implementing an effective income tax accounting strategies.
Key topics include:
− An overview of ASC 740: Income tax accounting
− Review issues/considerations on significant areas including valuation allowances, business combinations and uncertain tax positions
− Guidelines and best practices
− Latest tax accounting and regulatory developments and a lot more.
About The Knowledge Group, LLC/The Knowledge Congress Live Webcast Series
The Knowledge Group, LLC was established with the mission to produce unbiased, objective, and educational live webinars that examine industry trends and regulatory changes from a variety of different perspectives. The goal is to deliver a unique multilevel analysis of an important issue affecting business in a highly focused format. To contact or register to an event, please visit: http://theknowledgegroup.org
With the ever-changing and complex regulatory environment, compliance with accounting for income taxes (ASC 740), formerly known as FAS 109, has become more difficult for companies to manage efficiently. Companies must work hard to ensure that they minimize compliance related errors with the current tax laws and financial accounting and reporting standards.
In this two-hour LIVE webcast on May 17th, a panel of distinguished professionals assembled by The Knowledge Group will discuss the significant topics related to tax accounting rules and implementation of ASC 740. The faculty will discuss:
Brief Overview of ASC 740 and Refresher in Current and Deferred Tax Computation
Pertinent Accounting Principles and Tax Accounting Provisions
Application of ASC 740 to State and International Income Taxes
Hot Topics in Internal Controls
Issues Relating to Compensation and Benefits Developments
Best Practices and Practical Guidance for Tax Preparation, Compliance and Effectiveness
Up-to-the-Minute Regulatory Updates
This is a must attend event for Finance Executives, CPAs, Attorneys, Enrolled Agents, Tax Practitioners, and other Interested Professionals. Attending this course will give you the tools you need to understand the latest developments in ASC-740.
Course Level: Intermediate
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Group, LLC
Recommended CLE/CPE Hours: 1.75 - 2.0
Advance Preparation: Print and review course materials
Course Code: 134416
NASBA Fields of Study: Accounting – 1.00 credit and Taxes – 1.00 credit
Other Certifications: IRS EA Credits: Federal Tax – 2:00 credits
$199 - $249 (Early Bird Discounted Rate - on or before 05/07/2013)
$299 - $349 (Regular Rate - registration after 05/07/2013)
$149 (Government / Nonprofit Rate)
Featured Speakers for ASC 740: Income Tax Accounting for 2013 LIVE Webcast :
Douglas I. Schwartz, CPA/CFF, Cr.FA, Managing Member,
Samuel C. DiSalvo, CPA J.D., Director,
Angela L. Evans, Partner, Business Tax Services,
Douglas I Schwartz, LLC
Douglas I. Schwartz, CPA/CFF, Cr.FA
speaker bio »»
Freed Maxick CPAs, PC
Mark A. Stebbins, CPA
Director - Tax Practice Leader
speaker bio »»
Freed Maxick CPAs, PC
Samuel C. DiSalvo, CPA J.D.
speaker bio »»
Ernst & Young LLP
Angela L. Evans
Partner, Business Tax Services
Who Should Attend?
- Finance Executives
- Tax Attorneys
- Enrolled Agents
- Tax Practitioners
- Tax Directors
- Tax Managers/Executive
- Internal Audits
- Financial Planners and Executives
- Tax Consultants
- And Other Interested Professionals
This is a must attend event for anyone interested in understanding the related issues and changes to Income Tax Accounting (ASC 740). In this live virtual course, you will hear:
- Detailed guidance explained by the most qualified key leaders & experts
- Hear directly from experienced practitioners & thought leaders
- Interact directly with panel during Q&A
Advanced registration is recommended as space is limited. Please click the “Register” button below to enroll in this course today. Significant discounts apply for early registrants.
Please note, the event date is firm although it may be subject to change. Please click here for details.
The Knowledge Group, LLC is producing this event for information purposes only. We do not intend to provide or offer business advice. The contents of this event are based upon the opinions of our speakers. The Knowledge Congress does not warrant their accuracy and completeness. The statements made by them are based on their independent opinions and does not necessarily reflect that of The Knowledge Congress' views. In no event shall The Knowledge Congress be liable to any person or business entity for any special, direct, indirect, punitive, incidental or consequential damages as a result of any information gathered from this webcast.