Thomson Reuters has released a Checkpoint special report on income taxes and how they’ve been affected by tax reform. The report tackles Topic 740, Income Taxes, in the Financial Accounting Standards Board's Accounting Standards Codification and the changes brought by the enactment of the Tax Cuts and Jobs Act.

The report, titled “Accounting for Income Taxes after a Sweeping Tax Reform,” is free for download.

The report discusses the primary objectives of Topic 740 and how an entity determines the total income tax provision for financial reporting purposes. It summarizes the complexities of preparing the deferred income tax provision and highlights the accounting implications of the TCJA that affect most U.S. corporate entities. The report also provides a deep dive into the disclosures required under Topic 740 and includes a discussion of the FASB and Securities and Exchange Commission developments following the enactment of the TCJA.

Checkpoint Catalyst, Thomson Reuters’ tax research resource, has also released a new topic that guides accounting professionals through the rules in Topic 740, Income Taxes. It highlights the main principles, scope, recognition and measurement guidance, as well as presentation and disclosure rules related to income taxes. It addresses other difficult topics, such as intraperiod tax allocation, interim reporting, undistributed earnings of subsidiaries and joint ventures, and income taxes in connection with a business combination. The topic also provides interpretations and developments related to the provisions in the TCJA and includes tools that professionals can use when working on income tax matters.

“Accounting for income taxes is challenging in any given year. It is an area that requires a lot of judgment and a deep understanding of a complex standard, especially when a company’s activities span across multiple jurisdictions,” stated Salim Sunderji, managing director, Checkpoint, with the Thomson Reuters Tax & Accounting business. “The Tax Cuts and Jobs Act adds a layer of complexity and presents companies with many challenges, both immediately and in the future. Our new content is designed to help tax and accounting professionals navigate updated accounting rules and changes in tax laws.”

To download the free special report, click here. For more information on Checkpoint Catalyst: US GAAP, click here.