Preface
Preface
We are pleased to present the 2023 edition of Income Taxes,
which provides Deloitte’s insights into and interpretations of the income tax
accounting guidance in ASC 740.1 The income tax accounting framework has been in place for many years; however,
views on the application of that framework to current transactions continue to
evolve because structures and tax laws are continually changing. Therefore, use of
this Roadmap, though it is intended as a helpful resource, is not a substitute for
consultation with Deloitte professionals on complex income tax accounting questions
or transactions.
The body of this Roadmap combines the income tax accounting rules
from ASC 740 with Deloitte’s interpretations and examples in a comprehensive,
reader-friendly format. The Roadmap reflects Accounting Standards Updates (ASUs)
issued by the FASB through November 2023, and includes pending content from recently
issued ASUs. Readers should refer to the transition guidance in the FASB
Accounting Standards Codification or in the relevant ASU to determine the
effective date(s) of the pending guidance. Note that the 2023 edition of the Roadmap
reflects the guidance in ASU 2019-12, which is now effective for all entities.
Each chapter of this publication typically starts with a brief
introduction and includes excerpts from ASC 740 or related guidance, Deloitte’s
interpretations of those excerpts, and examples to illustrate the relevant guidance.
Some of the calculations in the examples use rounded numbers for simplicity. The
2023 edition of this Roadmap includes new guidance and editorial enhancements to
reflect our latest thinking and input from standard setters and regulators.
Appendix H
highlights significant changes made to this publication since issuance of last
year’s edition.
For certain accounting issues discussed in this publication,
multiple views or policies under U.S. GAAP may be acceptable. Unless specifically
noted otherwise, an accounting policy elected in these situations should be
consistently applied. Entities are encouraged to consult with their accounting
advisers for assistance in making such elections.
Be sure to check out On the Radar (also available
as a stand-alone
publication), which briefly summarizes key
issues and trends related to the accounting and financial
reporting topics addressed in the Roadmap.
We hope that you find this Roadmap a useful tool when considering
the income tax accounting guidance.
Footnotes
1
For the full titles of standards, topics, and regulations,
see Appendix F.
For the full forms of abbreviations, see Appendix G.