It’s no secret – accounting for income taxes in accordance with Accounting Standard Codification 740 (previously FAS 109) is complex and challenging.
Determining a company’s effective tax rate under today’s rules can overwhelm even the best of us.
It’s not just a matter of looking at traditional book/tax differences. Accounting for Stock Compensation under ASC 718 and Uncertain Tax Position under ASC 740-10 has added extraordinary complexity. However, there are also international, multi-state, business combination, credit, and discreet item issues to consider.
Due to the SEC restricting accounting firms from providing tax provision services to their audit clients, public companies are faced with the increased challenge of using their own internal resources to report income taxes in accordance with ASC 740. For many companies, this is simply not a feasible solution to implement. At BPM, we understand this and offer a solution to unload your burden.
BPM’s tax professionals have deep technical knowledge, across a wide array of industries, when it comes to accounting for income taxes and reporting under ASC 740. We work diligently with you and your external auditors to ensure your income tax reporting is made easier. We’ll take the guess work out of it, thereby giving your team the freedom to focus on more important business issues at hand.
Fin 48 Analysis
Compliance with FASB Interpretation (FIN) Number 48, Accounting for Uncertainty in Income Taxes, has caused much financial reporting confusion over the past couple years. The law, which deals with the proper recording of tax positions, first applied to public companies, so they seem to have a relatively firm grip on the adoption process. However, private companies have had to ease their ways into adopting the new rules.
As an entrepreneur or private company owner, the adoption process of FIN 48 may seem a burden, but it is required and therefore must be implemented as soon as possible. Let our experienced professionals offload your compliance burdens so that you can focus on the bigger issues.