Corporate Income Tax Provisions & Footnotes

Corporate Income Tax Provisions & Footnote Solutions

Due to independence rules, public accounting firms auditing financial statements of public and large private companies may require a second CPA firm to assist in the preparation of financial statements and supporting detail. At PDR, we have professionals with prior “Big Four”  accounting firm experience who will work closely with your primary auditing firm to ensure accurate quality compliance.

PDR CPAs + Advisors Corporate Income Tax Provision & Footnote Solutions:

  • Calculate income tax expense for financial reporting purposes pursuant to ASC 740:
    • Apply federal and state tax rules to items of income and expense to determine financial statement income taxes
    • Determine the breakout of current and deferred income taxes
    • Calculate the impact of changes to deferred tax asset realizability and corresponding valuation allowance changes on income tax expense
    • Determine tax implications of operations taxable in multiple jurisdictions
  • Calculate deferred income tax assets and liabilities pursuant to ASC 740:
    • Determine the realizability of deferred income tax assets and establish valuation allowances
    • Incorporate changes in income tax rates and tax law on deferred income taxes
    • Account for jurisdictional netting rules for deferred tax balances
    • Post adjustments to deferred tax balances in response to entity transactions
  • Determine the application of tax law as well as prepare GAAP income tax accounting for complex entity transactions:
    • Account for the tax impact of employee stock options and other equity compensation
    • Evaluate uncertainty in historical and current income tax positions taken, and establish liabilities for uncertain tax provisions
    • Determine income tax purchase accounting entries under stock and asset sales
    • Evaluate the establishment and removal of intangible assets and goodwill for income tax implications
    • Evaluate debt financing activities for income tax implications, including accounting for deferred financing costs, original issue discounts, interest expense limitations, etc.

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