12.1 Introduction
This chapter provides income tax accounting and disclosure guidance
related to noncontrolling interests, equity method investments (including specific
exceptions in ASC 740 related to corporate joint ventures and changes in ownership of
investees), qualifying investments accounted for by using the proportional amortization
method, regulated entities, and distinguishing a change in estimate from a correction of
an error. The book-versus-tax-differences chapter of this Roadmap (Chapter 3) provides helpful
guidance on the respective definitions of inside and outside basis differences (see
Section 3.3.1) and the
recognition criteria for deferred taxes.