Income Tax Accounting in Chicago

DAY ONE

8:30 - 11:30

(COFFEE BREAK 10:00-10:10)

UNDERSTANDING THE KEY BENEFITS OF TOPIC 740 (FAS 109)

Topic 740 (FAS 109) replaced prior standards for deferred income tax reporting and requires more professional judgment in the reporting process. This kick-off session reviews the advantages of Topic 740 (FAS 109) including: 

• Reduction of Complexity
• Recognition of Deferred Tax Assets

• The Liability Method
• Review of Major Rule Changes
• Terminology Changes
• What Temporary Differences Are
 

IDENTIFYING THE KEY RECOGNITION AND MEASUREMENT ISSUES

Recognition of deferred income taxes is based on differences in the carrying value of assets and liabilities for book and tax purposes. Measurement based on current tax laws and the use of a valuation allowance for impaired value make the standard more realistic for asset and liability recognition. In this session, you review tax-planning strategies that allow your company to recognize deferred tax assets. Get a firm grasp on topics including: 

• Identifying Types and Amounts of Temporary Differences
  and Operating Loss and Tax Credit Carry-Forwards
• Measuring Deferred Tax Assets and Liabilities
• Future Realization of a Tax Benefit
• Reducing Tax Assets by a Valuation Allowance
• "More Likely Than Not" Test
• Enacted Change in Tax Laws or Rates
• Tax Planning Strategies
• Change in Tax Status
• Regulated Enterprises
• APB 23 Difference
• Intercorporate Tax Allocation Issues
• Interperiod Tax Allocation
 

CALCULATING THE MECHANICS OF DEFERRED TAX ASSETS AND THE VALUATION ALLOWANCE

This in-depth presentation covers the various sources that may be used to support the realizability of deferred tax assets. Find out the positive and negative evidence that may be available to support your company's position. Identify the following critical factors:

• Reversals of Taxable Temporary Difference
• Future Taxable Income
• Taxable Income in Carryback Years
• Tax Planning Strategies
• When Is Realization "More Likely Than Not?"
• Evaluating Positive and Negative Evidence
• Types of Positive and Negative Evidences
 

11:30 – 12:15

CASE STUDIES

• Federal and State Deferred Tax Allocations
• Rate Reconciliation
• Balance Sheet Presentation
• Valuation Allowance

12:15 - 1:15

LUNCHEON

1:15 – 1:45

PRACTICAL “TRUE-UP” EXERCISE

Review the importance and mechanics of the "true-up" of the income tax provision and related balance sheet accounts. Your instructor discusses the basic methodology of the true-up through a detailed case study.
 

FIN 48: UNCERTAIN TAX POSITIONS

3:10 – 4:30

4:45

DAY ONE ADJOURNMENT

DAY TWO

8:30 – 9:30

UNDERSTANDING THE DISCLOSURE REQUIREMENTS FOR TOPIC 740 (FAS 109)

Get a thorough understanding of disclosure requirements for Topic 740 (FAS 109), including the components of the tax provision, total deferred tax assets, liabilities, the valuation allowance, and the statutory-effective tax rate reconciliation. Get an in-depth look at: 

• Financial Statement Presentation
  - Classification of deferred taxes
  - Intraperiod tax allocation
  - Items credited directly to equity

• Major Disclosure Requirements
  - Significant temporary differences
  - Components of income tax expense
  - Total deferred tax assets and liabilities
  - Total valuation allowance and net change
  - Carry-Forwards or carrybacks

9:45 – 12:00

THE EFFECTS OF TOPIC 740 (FAS 109) ON BUSINESS COMBINATIONS

Walk through these key issues of Topic 740 (FAS 109) as they relate to business combinations.

• FAS 141(R)
• Examination of the Counter-Intuitive Effective Tax Rate Impact of New M&A Accounting
  Standards
• Integration of Acquiring and Acquired Companies' Tax Position
• Subsequent Recognition of Carry-Forwards
• Taxable Purchases
• Accounting for Intangibles - Section 197