Gain an improved understanding of the technical requirements under ASC 740 and better advise your clients.

As tax professionals, we are tasked with accurately reporting the tax results for our respective organizations within an environment of high scrutiny from both the external recipients of this information along the review and oversight of our internal and external audit teams. After this topic, you will be able to describe the basic process of the current tax provision; identify the various components of the deferred provision and impact to the total tax provision; and the overall results as they will be reported in your financial statements. Additionally, you will be armed with information which may assist you in assessing the overall effectiveness of your tax internal controls environment, while providing further support for the accuracy of your tax controls and ultimately the financial statement disclosures.

What Is ASC 740?

ASC 740 is the set of standards responsible for accounting for income taxes and determining a company’s effective tax rate. A thorough understanding of ASC 740 requirements is essential for any accountant working in an organization adhering to Generally Accepted Accounting Principles.

One key part of ASC 740 compliance is determining whether or not an organization has uncertain tax positions — such as any interpretation of earnings that is less than what the IRS is likely to assess independently or uncover during an audit. This involves a comprehensive process of identification and measurement, both for the current fiscal year and for any years prior.

ASC 740 Training

Determining the taxable income of a business or nonprofit is never simple. For example, if a business is historically profitable and is expected to return to profitability soon, it can sustain a period of operating at a loss without its value being affected. Failing to properly consider these factors has the potential to put an organization into an uncertain tax position.

This program contains a basic overview of several topics relevant to the identification of uncertain tax positions. 

Course Objectives:

• ASC 740 basics — What is it, how it works and who is responsible for adhering to it.


• Income tax computation — How does ASC 740 require that current and deferred incomes taxes be calculated?


• Valuation allowances — What evidence must be weighed to determine an accurate valuation?


• Accounting for uncertainty — How likely is it that a tax position will be sustained on examination?