The Income Tax Provision Under ASC 740
Written by Aparna Devalla
Curated by Rubric Financial
Last updated
1 / 5
What the Tax Provision Is
- The income tax provision is the total income tax expense reported on your GAAP income statement each period.
- It combines current tax owed for the period with deferred tax from timing differences between books and tax.
- ASC 740 governs how companies measure and disclose income taxes in financial statements prepared under US GAAP.
- The provision is a book concept and differs from the cash taxes you actually pay on your tax return.
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About the author
Aparna DevallaCPAHead of Tax & Accounting
CPA and Head of Tax & Accounting at StartupCFO. Specializes in multi-state tax compliance, R&D credits, and GAAP-compliant books for venture-backed startups.
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