The Impact of the Tax Cuts and Jobs Act on GAAP and Financial Reporting - For the 2019 Tax Year (Course Id 1494)

Taxes - Taxes for Course Id 1494

The objective of this course is to inform the reader of impacts the changes made by the Tax Cuts and Jobs Act have on GAAP and financial reporting.

Topics include an analysis of adjustments required to be made to deferred income tax assets and liabilities, including those assets related to net operating losses,  newly issued ASU 2018-02 related to the tax effect of accumulated other comprehensive income,  accounting for the change from an S to a C corporation,  impact of the elimination of like-kind exchanges,  GAAP accounting for bonus and Section 179 depreciation, new limitations on interest deduction, SEC SAB 118 transition rules,  presenting the tax benefit of an NOL carryover, and more.

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - 1494

Course Learning Objectives

• Recognize how an entity should account for deferred tax accounts under the Tax Cuts and Jobs Act
• Identify how the ASU 2018-02 election is made to reclassify the tax-effect on accumulated other comprehensive income
• Recall the adjustment that is made when an entity converts from S to C corporation status
• Recognize the type of like-kind exchange that qualifies for nonrecognition of gain or loss under GAAP
• Identify a way in which an entity can account for bonus depreciation under GAAP.
• Recall the overall impact that the reduction in the corporate tax rate is having on SEC companies
• Recognize whether SEC companies are permitted to discount tax liabilities pertaining to repatriated income
• Recall when an entity is required to disclose the tax years open for examination

Chapter 1 - The Impact of the Tax Cuts and Jobs Act on GAAP and Financial Reporting

General

I.      GAAP Impact of Tax Changes Made by the Tax Cuts and Jobs Act

A.    Tax Rate Change Impact on Deferred Income Taxes

B.    ASU 2018-02: Income Statement—Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

C.    Revaluing Deferred Tax Assets from NOLs

D.    Impact of Indefinite NOL Carryover Period on Deferred Tax Asset Valuation Accounts

Review Questions

E.     Accounting for the Change from S to C Corporation

F.     New Limitation on Interest Deduction

G.    Elimination of Like-Kind Exchanges on Personal Property

H.    Accounting for Bonus and Section 179 Depreciation in GAAP Financial Statements

I.      Overall Impact of Reduction in Tax Rate on SEC Companies

Review Questions

J.      SEC Staff Accounting Bulletin (SAB) No. 118

K.    FASB Staff Q&A: Topic 740, No.  2: Whether to Discount the Tax Liability on the Deemed Repatriation

L.     Effective Cash Flow Tax Rate of U.S. Companies

M.    Other Financial Statement Impacts of the TCJA  (Act)

II.    Other Tax-Related Issues

A.    Deferred Tax Asset Recorded on Other Carryovers

B.    Presentation of Tax Benefit of NOL Carryover

C.    Presenting Deferred Tax Assets and Liabilities on the Balance Sheet—FASB’s ASU 2015-17

D.    Fixing the Disclosures in Uncertain Tax Positions for Nonpublic Entities

Review Questions

Glossary