Accounting for Income Taxes (ASC 740)​

Accounting for Income Taxes (ASC 740)​

Income tax accounting is one of the most technically demanding aspects of the financial statement process. Companies must apply ASC 740 or IAS 12 while navigating evolving tax laws, significant management judgments, auditor scrutiny, and, for public companies, SEC reporting requirements. Getting the provision and related disclosures right requires both technical depth and practical experience.

As an independent firm, unaffiliated with any financial institution or audit practice, Andersen is not subject to the conflict-of-interest or regulatory restraints typically associated with such practices. As a result, Andersen’s accounting for income tax practice serves as a dedicated advocate for public company, pre-IPO business, and private equity-backed portfolio company clients through every stage of the provision and disclosure process, from recurring quarterly and annual reporting to the additional complexity of a business combination or an initial SEC filing.

Services include: 

• Accounting for income taxes under ASC 740 and IAS 12
• Uncertain tax positions
• Valuation allowance assessments
• Tax accounting for business combinations and other significant transactions
• Stock-based compensation
• Tax related contingency support for ASC 450 or IAS 37 analysis
• Quarterly and annual income tax disclosures
• IPO and SEC reporting readiness

Andersen has helped businesses: 

• Prepare and review quarterly and annual income tax provisions and supporting workpapers, with the technical depth, practical experience, and documentation needed to support an efficient audit process.
• Address the income tax accounting implications of business combinations, joint ventures, discontinued operations, and other significant transactions
• Evaluate and document uncertain tax positions and valuation allowance assessments, developing clear and supportable conclusions for management and auditor review
• Prepare and review income tax disclosures for Forms 10-K, 10-Q, and S-1 in accordance with applicable accounting and SEC reporting requirements