Wiley GAAP 2019

47ASC 740 INCOME TAXES

PERSPECTIVE AND ISSUES

 

Subtopics

ASC 740, Income Taxes, consists of three subtopics:

• ASC 740-10, Overall, which provides most of the guidance on accounting and reporting for income taxes
• ASC 740-20, Intraperiod Tax Allocation, which provides guidance on the process of allocating income tax benefits or expenses to different components of comprehensive income
• ASC 740-30, Other Considerations or Special Areas, which provides guidance for specific limited exceptions related to investments in subsidiaries and corporate joint ventures arising from undistributed earnings or other causes

Incremental guidance may also be found in other topics, for example: Investments—Equity Method and Joint Ventures, Business Combinations, Foreign Currency Matters, Reorganizations, Entertainment—Casinos, Extractive Activities—Oil and Gas, Financial Services—Depository and Lending, Financial Services—Insurance, Health Care Entities, Real Estate—Common Interest Realty Associations, and Regulated Operations. (ASC 740-10-05-4)

Scope and Scope Exceptions

ASC 740-10 applies to income taxes accounted for in accordance with ASC 740, and thus does not apply directly or by analogy to other taxes, such as real estate, personal property, sales, excise, use taxes, or franchise taxes to the extent based on capital, or a withholding tax for the benefit of the recipients of a dividend. (ASC 740-10-15-4)

The guidance in ASC 740-10 relating to uncertainty in income taxes includes any ...