The Guide explains all of the deferred tax accounting rules and contains comprehensive guidance on how to calculate the current income tax provision. It illustrates all aspects of accounting for income taxes, including computing taxable income, identifying temporary and permanent differences, uncertainty in income taxes, computing the tax effect of permanent differences, making proper disclosures, and dealing with NOLs, AMT, and credits.

The Guide discusses several different aspects of accounting for income taxes including:

• Chapter 1 provides a brief introduction of certain tax laws and authoritative literature on the accounting for income taxes, including a quick start section that provides a concise overview of current and deferred taxes, a detailed discussion of applying GAAP for uncertain tax positions to small and midsize nonpublic entities, a detailed discussion of applying GAAP for uncertain tax positions to small and midsize nonpublic entities, as well as worksheets and checklists to assist in the calculation of income tax provisions.

• Chapter 2 focuses on GAAP to tax temporary and permanent differences. Several, common types of temporary differences are summarized in the Appendix. Specifically, the Appendix describes how the temporary difference originates, explains how to calculate the difference, and describes the most efficient way to determine the reversal period.

• Chapter 3 discusses (and provides numerous illustrative examples of) calculating current income taxes under the regular tax system and the alternative minimum tax system, including the effects of tax credits, preference items, adjustment items, adjusted current earnings (ACE) adjustments, and net operating losses.

• Chapter 4 discusses the nuances of deferred taxes. Various topics, such as selecting a tax rate, calculating deferred taxes, valuation allowances, multiple tax jurisdictions, and estimating future taxable income, are covered and illustrated through numerous examples.

• Chapter 5 provides current presentation and disclosure requirements for deferred taxes, including tax assets, tax liabilities, income tax expense, and net operating losses. Several illustrative examples and worksheets are included for reference purposes.

• Chapter 6 addresses the effects of deferred taxes on special accounting areas. Interim financial statements, consolidated financial statements, equity method investments, and business combinations are some to the topics covered in this chapter.