Preparing carve-out tax provisions - Navigating the challenges

February 2012
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Preparing carve-out tax provisions - Navigating the challenges

At a glance

The preparation of carve-out financial statements can be complex and often highly subjective. The carve-out tax provision in such statements is no exception. First and foremost, preparers of carve-out financial statements for taxable entities must comply with ASC 740, Income Taxes. Seven key principles can help preparers establish a solid foundation for building reliable tax provisions for the carve-out entity.

The preparation of carve-out financial statements can be complex and often highly subjective. The carve-out tax provision in such statements is no exception. First and foremost, preparers of carve-out financial statements for taxable entities must comply with ASC 740, Income Taxes. Seven key principles can help preparers establish a solid foundation for building reliable tax provisions for the carve-out entity