ASC 740 Income Tax Provisions

Material weakness, defined as deficiencies in internal control over financial reporting, can negatively impact the position and profitability of your company. If discovered, material weaknesses must be reported in public SEC filings in the period in which they are identified and can lead to stock declines, increased external audit and legal fees, and difficulty securing loans or other funding. It can also impact a company’s reputation since it often happens as the result of poor oversight processes, which can cause stockholders to lose faith in your ability to manage other areas of your business too.

Are you concerned that you may have inadequate segregation of duties in your accounting department? Are your management review procedures designed in a way to address risk and ensure proper documentation? Do you keep up with all income tax law changes that apply to your industry?

Under US GAAP, ASC 740 governs how your business recognizes the impacts of income taxes. Creating accurate ASC 740 disclosures requires in-depth tax expertise, industry-specific technical knowledge, and meticulous attention to detail. With so much at stake, it pays to work with our team of talented tax professionals to understand what is driving your company’s tax rate and what its tax provision includes. We have vast experience working with private and public companies throughout the US, allowing us to bring best practices while still taking a tailored approach to your provision.