Income tax accounting

Accounting for income taxes is a perpetual hot topic in the Georgia, posing many challenges for preparers, users and auditors, particularly in the wake of tax reform.

Continued areas of focus/challenge

Among those challenges are:

• Accounting for the impact of tax reform, including changes in tax rates and other provisions in the Tax Cuts and Jobs Act including deemed repatriation and more
• tax accounting rules for valuation allowances,
• intraperiod allocation,
• interim periods,
• business combinations, and
• foreign operations

The ever-changing landscape of income tax law requires analysis on a continuous basis across multiple jurisdictions. In addition to being complex, the relevant accounting standards contain many nuances, and applying the standards oftentimes involves significant judgments.