FASB ASC 740 tax accounting compliance

Our clients’ management teams, Boards of Directors, and external auditors must be confident in the ability of the company’s FASB ASC 740 service provider to consistently identify and address all issues in an efficient and timely manner. For this reason, we are committed to focusing our time, energy and resources on our core competency – income tax compliance services.

All of our internal product and personnel development efforts revolve around this single tax process. To reinforce our commitment to this specialty, we require a rigorous FASB ASC 740 training regimen for our staff, continually monitor current developments by subscribing to the best tax resources available, and maintaining strong relationships with Big Four accounting firms that generally have the pulse of new developments.

Because of our focus on FASB ASC 740, we have invested significant resources in developing a proprietary standardized core provision model based on input we have received from a variety of clients and external auditors. The emphasis of this model is ease of review through the use of an intuitive, linear data flow along with data checks and reconciliations throughout to help ensure accuracy of the analysis. While the model continues to evolve to meet new challenges and documentation requirements, the core model provides consistency for all Clifton Douglas tax provision clients.

Furthermore, since we specialize in compliance and standardize our core provision model, we have developed a core competency in the tax provision process that allows for timely preparation without sacrificing accuracy. Since we are not distracted by areas outside of our recognized core competency, we are able to focus our attention solely on meeting compliance deadlines while constantly improving the tax provision process.

At the completion of each provision analysis, we provide our clients with a comprehensive provision package. This includes a complete set of working papers prepared in accordance with audit industry standard best practices.

In addition to the core provision model, the deliverable includes supporting provision documentation, proposed journal entries and financial statement disclosures, and a detailed tax provision memorandum discussing key facts, assumptions, and rationale used in reaching the conclusions. We provide two primary levels of FASB ASC 740 services. Both levels of service are typically performed on a fixed fee basis to assist in company planning and budgeting.

Basic Tax Provision
This service is generally for private corporations with basic operations that are budget conscious in light of limited resources and a growing company. For this type of company, we offer a simplified methodology for providing a comprehensive provision analysis meeting the audit program requirements while being mindful of budget constraints.

Advanced Tax Provision
This service is generally for public corporations with multinational operations and complex issues. For this type of company, we maintain the resources and knowledge necessary to identify and address complex compliance needs while focusing on process to meet tight quarterly deadlines.