CCH Learning Center

FAS 109: Accounting for Income Taxes

Accounting for income tax is complicated in part by its many applications in specialized or rarely seen areas. The professional literature on the subject is verbose and fragmented, with six authoritative pronouncements in the "level A" GAAP hierarchy alone, and another twenty-three in the lower levels.

This course attempts to distill the complex provisions of FAS 109 and the other authoritative literature on accounting for income taxes into a succinct guide for the most commonly seen practice situations. It explains the theory of how to differentiate the temporary differences that give rise to deferred income taxes, as well as how to calculate, record, and display them.

The course concludes with a comprehensive illustration that demonstrates in a practical, worksheet-based format, how to put the theory into practice.