What is an ASC 740?
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Besides, what is ASC 740 fin48?
FIN 48 (mostly codified at ASC 740-10) is an official interpretation of United States accounting rules that requires businesses to analyze and disclose income tax risks. It was effective in 2007 for publicly traded entities, and is now effective for all entities adhering to US GAAP.
Likewise, does ASC 740 apply to partnerships? ASC 740 applies only to business entities subject to income taxes. It does not apply to a franchise tax to the extent it is based on capital and there is no additional tax based on income. If there is an additional tax based on income, that excess is considered an income tax and is subject to ASC 740.
Also to know, who does ASC 740 apply to?
The issue of whether a tax is an income tax is discussed in the Income Taxes Topic (Topic 740) and applies to all entities—both public and nonpublic—whether or not they are pass-through entities or not-for-profit entities.
What is a tax provision?
A provision for income taxes is the estimated amount that a business or individual taxpayer expects to pay in income taxes for the current year. The amount of this provision is derived by adjusting the reported net income of a business with a variety of permanent differences and temporary differences.