This Financial Reporting Insights is intended to be used as a resource in understanding and analyzing how to determine the applicable income tax rates to be applied to the entity’s taxable income and cumulative temporary differences in order to calculate the current taxes payable (refundable) and deferred tax assets (liabilities), respectively. The scope of this publication includes identifying the entity’s federal (national) tax rate, any state, local and foreign tax rates, as well as the impacts of changes in these rates and alternative tax systems, such as alternative minimum taxes.
This publication does not address every aspect of accounting for income taxes and should therefore be read in conjunction with FASB Accounting Standards Codification (ASC) 740, Income Taxes.
