Under the guidelines of the FASB, a company must be accountable for any type of income that whether it be incurred or paid out to another person or persons. One of the guidelines that focuses especially on the issue of income tax liability is ASC740-10. According to an article taken from Brewer, both types of companies whether they be profit or non profit entities are all susceptible to this particular guideline and must adhere to the standards which are set forth regarding tax liabilities and how these companies should report them in a proper manner.
In order for a company to be fully accurate regarding its tax status, it needs to take into consideration all forms of financial activity that have taken place over the course of each year including:
In order for a company to be fully accurate regarding its tax status, it needs to take into consideration all forms of financial activity that have taken place over the course of each year including: