FASB Interpretation No. 48 was described by some as a roadmap to identifying gray areas within a return for the Internal Revenue Service. The Interpretation, along with the new Schedule M (Schedule M-3) for large filers, has resulted in renewed interest in the topic of accounting for income taxes. This program addresses the current guidance in accounting for income taxes, valuation accounts and when they should be used, accounting for uncertainty in income taxes, and the new Schedule M-3.

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the audio CDs and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD or audio CDs that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Software
The user should begin by reviewing the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

Chapter 1 provides an introduction to the course and the authoritative guidance.

Chapter 2 looks at the methodology behind accounting for income taxes.

Chapter 3 examines key recognition and measurement issues involved in accounting for income taxes.

Chapter 4 considers deferred tax assets, and the use of valuation accounts.

Chapter 5 provides insights on recent FASB guidance on this topic on uncertainty in income taxes.

Chapter 6 discusses key financial statement disclosure requirements and certain special topics.

Chapter 7 reviews accounting for the differences between estimated tax numbers and those resulting from filed tax returns.

Chapter 8 considers the new Schedule M-3, and issues with it.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this program includes the following designations:

Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

Biskalert is intended to warn the practitioner of a particular situation that may require action or other consideration by the client/the practitioner on behalf of the client.

Biskplan offers a strategy/discussion point when a practitioner is faced with a particular issue or situation.

• Explain the use of valuation approaches

• Discuss the impact of the timing of a difference on reporting

• Identify the steps in measuring deferred tax assets and liabilities

• Define "more likely than not"

• Explain the impact of enacted changes in tax laws and rates

• Discuss how a change in tax status affects deferred tax assets and liabilities

• Calculate realization of a deferred tax asset is more likely than not

• Define certain and uncertain tax positions

• Discuss the process used to evaluate tax positions for recognition and measurement in the financial statements

• List required disclosures related to uncertain tax positions

• Allocate the deferred income tax based on the various components of the income statement

• Discuss the Schedule M-3

Cherie Hennig, PhD, is a professor for the School of Accounting at Florida International University in Miami, Florida. Dr. Hennig began her career as an IRS Revenue Agent in Denver, CO. She has taught undergraduate and graduate tax courses at Florida International University, Colorado State University, the University of South Florida, and Virginia Tech. She has published numerous tax articles, is an author or co-author on numerous tax texts and also has taught numerous continuing education courses. She is a member of the American Taxation Association, the American Institute of CPAs and the National Association of Tax Return Preparers. (Author)

Gil Manzon, DBA, is an associate professor at Boston College and the Faculty Director of the Master of Science in Accounting program. He has teaching interests in taxation, financial statement analysis, and financial accounting and reporting. His research examines the effects of taxation on business structure and investment and financing activity. His articles have been published in such journals as: Tax Law Review, Journal of Finance, Journal of American Taxation Association, Management International Review, Journal of Accounting and Public Policy, and Journal of Financial Research. (Author)