Accounting for Income Taxes: 2012 Year-end Hot Topics
Calendar year 2012 has seen considerable activity across the global legislative and regulatory landscapes. In addition to one-off changes to tax laws in several key territories, certain legislative trends have had a significant impact on income tax accounting. These developments, combined with the continued economic uncertainty, have added to the complexity and judgment involved in accounting for income taxes.
As in prior years, this publication is focused on the topics we believe will be most relevant to the preparation of 2012 year-end financial statements. Some topics have been discussed in our prior annual publications, however their continuing importance warranted including them again in 2012.
The topics covered in this 2012 publication are as follows:
- Tax law developments
- SEC comment letter trends
- Uncertain tax positions
- Valuation allowances
- Indefinite reinvestment assertions
- Foreign currency
- Business combinations and disposals
- Tax accounting method changes
- Stock-based compensation
- Taxes not based on income
- Effective tax rate reconciliation
- Presentation and disclosure
- IFRS status update