Wiley GAAP 2016

44ASC 740 Income Taxes

1. Perspective and Issues
   1. Subtopics
   2. Scope and Scope Exceptions
   3. Overview
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Accounting Theory
      1. Simplified Example of Interperiod Income Tax Allocation using the Liability Method
   2. Temporary Differences
      1. Temporary Differences from Share-Based Compensation Arrangements
      2. Temporary Differences Arising from Convertible Debt with a Beneficial Conversion Feature
      3. Other Common Temporary Differences
   3. Permanent Differences
   4. Treatment of Net Operating Loss Carryforwards
      1. Example—Net Operating Loss Carryforwards and Income Tax Credit Carryforwards
   5. Measurement of Deferred Income Tax Assets and Liabilities
      1. Scheduling of the Reversal Years of Temporary Differences
      2. Determining the Appropriate Income Tax Rate
      3. Computing Deferred Income Taxes
      4. Computation of Deferred Income Tax Liability and Asset—Basic Example
   6. The Valuation Allowance for Deferred Income Tax Assets Expected to Be Unrealizable
      1. Establishment of a Valuation Allowance
      2. Example of Applying the More-likely-than-not Criterion to a Deferred Income Tax Asset
      3. Impact of a Qualifying Tax Strategy
   7. Accounting for Uncertainty in Income Taxes
      1. Background
      2. Initial Recognition and Measurement
      3. Example of the Two-Step Initial Recognition and Measurement Process
      4. Interest
      5. Penalties
      6. Subsequent Recognition, Derecognition, and Measurement
      7. Classification
      8. Applicability to Business Combinations
   8. The Effect of Tax Law Changes on Previously Recorded Deferred Income Tax Assets and Liabilities ...