Handbook: Accounting for income taxes
Handbooks | October 2025
Latest edition: KPMG explains the accounting for income taxes in detail, providing examples and analysis.
Our Handbook is designed to assist in an understanding of the application of ASC 740, providing in-depth guidance on a wide range of implementation issues. Among other things, this October 2025 edition incorporates clarified guidance on Pillar Two – Global Minimum Tax.
Applicability
- All entities subject to income tax
Relevant dates
- Effective immediately
Key impacts
In addition to an analysis of ASC 740 and other pertinent sections of the FASB’s ASC, this book provides interpretive guidance, including illustrative examples and questions and answers, and addresses specific implementation issues identified since these sections became effective.
This publication represents our current interpretation of ASC 740, which is based partly on periodic, informal discussions with the FASB and SEC staff. Our interpretations may be affected by future guidance issued by the FASB or its staff, the SEC staff, and others involved in the standard-setting process.
We recommend that companies refer to the texts of the applicable literature and consult their accounting and tax advisers when considering the practical aspects of applying ASC 740.
Report contents
- Temporary differences
- Tax calculation
- Valuation of deferred tax assets
- Changes in tax laws, rates or status
- Tax effects of business combinations
- Foreign operations
- Income tax issues associated with share-based payment arrangements
- Financial statement presentation and disclosure
- Other considerations
- Examples of scheduling temporary differences
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Accounting for income taxes
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