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Financial Reporting Changes Post-Tax Reform: GAAP Entries for Repatriation Tax, GILTI and BEAT

Determining Adjustments to Deferred Tax Assets, Retained Earnings and OCI

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, August 22, 2019

Recorded event now available

This course will provide financial accountants and advisers with a practical guide to meeting the GAAP financial reporting challenges of the foreign repatriation tax provisions of the 2017 tax reform law on publicly traded and non-publicly traded companies. The panel will discuss FASB's approach to proper reporting of deemed repatriation amounts and taxes, now-refundable AMT credits, base erosion tax liabilities, and GILTI.

Description

The 2017 tax overhaul act set a new framework for the treatment of foreign-sourced income received by U.S taxpayers, making the regime more territorial than previous treatment. Beyond the obvious tax implications of the new law, the change to a quasi-territorial tax regime presents significant and ongoing challenges for financial accounting professionals in the preparation of financial statements for companies with international activities.

The most immediate challenge for financial accounting professionals is the financial statement presentation of the new law's deemed repatriation provisions, which are designed to end prior deferral benefits for U.S. shareholders of foreign business entities. U.S. taxpayers holding ownership shares of specified foreign corporations are required to recognize and pay tax on previously untaxed or deferred foreign-source income. FASB has issued preliminary guidance on the treatment of this repatriation tax and the corresponding impact on already booked deferred tax assets.

FASB identified five areas of implementation for GAAP accountants to apply the terms of the new tax law to existing financial statements. Critical to financial statement presentation is the adjustments that must be made from OCI to retained earnings to account for the tax effects resulting from the lower corporate rate, as well as the account adjustments for deemed repatriation, GILTI and other tax changes.

Listen as our expert panel provides a critical first look at FASB guidance on the financial accounting impacts of the new tax law.

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Outline

  1. The overall impact of tax reform on GAAP financial reporting
  2. Accounting for the permanent lowering of corporate income tax
  3. Booking deemed repatriation tax
  4. Financial statement treatment of AMT credits available to offset regular income tax
  5. Discounting for GILTI
  6. Impact of BEAT on deferred tax assets

Benefits

The panel will discuss these and other relevant topics:

  • Adjustments to deferred tax assets and liabilities for permanent lower tax rates
  • Where on the income statement and balance sheet to account for the deemed repatriation tax impact
  • Financial statement reporting of AMT credits that can be used to reduce regular tax
  • What rate to apply when accounting for base erosion and anti-abuse (BEAT) tax
  • Accounting options for global intangible low-taxed income (GILTI)

Faculty

Newhard, James
James J. Newhard, CPA
Owner
James J. Newhard, CPA

Mr. Newhard's specialties are tax strategies, compliance, preparation, planning & controversy for small...  |  Read More

Winiarski, Mark
Mark Winiarski
Shareholder
Mayer Hoffman McCann

Mr. Winiarski is recognized as a national resource for various technical topics including Revenue Recognition, Business...  |  Read More