[Anonymous]

Hi everyone I am applying for a tax position (0-1 years exp required) that will be heavily involved in doing tax provisions and deferred tax assets/liabilities. Does anyone here have experience in ASC 740-10(FIN 48) that can give a quick summary of what to expect or what i should know with regards to this topic. And yes, I have googled some materials and read all these powerpoints done by top 10 firms but it’s not registering like it should.

Thanks!

[musicamor]

What exactly do you want to know? Tax provisions basically start with the M-1 in the 1120 and then the tax department usually gives info to corp. acctg. to book in the F/S.

Obviously, you need to understand all of your temporary/permanent differences, which give rise to deferred tax liabilities and assets. A liability arises when current deductions result in future paybacks; the inverse applies to deferred tax assets–future deductions which result from current nondeductibility.

FIn 48 deals with uncertain tax positions, i.e., a foreign subsidiary subject to local income tax and whether or not said tax will have an impact on taxation in the US. Or, when a business incurred past NOLs–whether or not they will continue to be deductible in future profitable years.

Let me know if you need more detail.

Texas CPA - licensed in 2012!!!

[Anonymous]

Thanks for the response!

I understand the m-1 adjustments but it's the disclosure part that I'm uncertain about. The clients we have at my current job are on the smaller end and normally are kept on OCBOA so the need to write tax provisions or take into account FIN 48 is not there. I was looking for the next step i guess. Once you've accounted for all your book tax differences, how do you disclose in the proper manner.

[littlenumberrobot]

I have several clients on accrual accounting. We book deferred tax entries for gains/losses on available for sale securities and depreication differences. I just use the spreadsheet the rolls foward each year. There will be a note disclosure every year there is a deferred tax expense/benefit. We just report the amounts in the disclosures portion (we perform a review). This was the first time I have done work in this area, it is not too compicated, and there will always be resources. I live out of my PPC guides during financial statement time of the year!

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[Anonymous]

thanks for the insight littlenumberrobot!

I have a job interview soon for a position that will require such work and wanted to make sure I can get an understanding of what exactly everything entails. Both responses have been very helpful. thanks to you both!

[musicamor]

@Boarderguy–if you're looking for disclosure help, I would pull a 10-Q or 10-K from a public company and see what they have written about their tax provisions.

Texas CPA - licensed in 2012!!!

[Author]

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