ASC 740: guides and deferred tax calculator

Plain-English guides to ASC 740, each with a worked example, and a deferred tax calculator.

ASC 740 covers current and deferred income taxes, valuation allowances and uncertain tax positions. 5 guides and 1 Excel model, all free.

Excel model

Each workbook comes filled in with a worked example, so you can see how it works before replacing the figures with your own. Cells to edit are marked.

Deferred tax calculatorExcel downloadTemporary differences, deferred tax assets and liabilities with the recoverability test, accelerated tax depreciation, and the tax rate reconciliation. IAS 12.

5 guides

ASC 740 income taxes explained3 minute readASC 740 income taxes explained: current and deferred taxes, enacted rates, valuation allowances, uncertain tax positions and the effective tax rate.
Deferred taxes under ASC 7403 minute readASC 740 deferred taxes explained with an example: deferred tax liabilities from bonus depreciation, deferred tax assets, enacted rates and journal entries.
The valuation allowance3 minute readHow the ASC 740 valuation allowance works: the more-likely-than-not test, sources of taxable income, positive and negative evidence, and cumulative losses.
Uncertain tax positions under ASC 7403 minute readHow ASC 740 treats uncertain tax positions (formerly FIN 48): the two-step recognition and measurement test, cumulative probability, interest and penalties.
ASU 2023-09 income tax disclosures3 minute readASU 2023-09 income tax disclosures explained: the new rate reconciliation categories, the 5% threshold, income taxes paid by jurisdiction and effective dates.

About these guides

The guides explain the standard in our own words, with our own examples, and point to the paragraphs they rely on. They are general information, not advice for your situation. Read them alongside the standard itself, and check when your regulator adopts it.