Adjunct Professor at NYU School of Law, Graduate Tax Program:
Accounting for Tax Consequences, a self-created course on ASC 740 in theory and practice. Topics include GAAP (and IFRS) treatment of DTAs (Deferred Tax Assets), DTLs (Deferred Tax Liabilities), tax reserves, APB 23 elections, direct vs indirect method for tax credits, the “simultaneous equations method”, tax accounting treatment of equity-based compensation and goodwill and tax attributes in purchase accounting applied in the context of a business combination.
Businesses, both broadly and specifically, view taxes as one (albeit important) part of overall decision making. Financial accounting often is, for better or worse, the language of corporate decision making, and thus the manner in which tax consequences affect a profit & loss statement or balance sheet plays an important role in how tax decisions are ultimately made. The goal of this course will be to familiarize the student with the accounting rules applicable to tax events and consequences, and then illustrate the application of those rules through an in-depth analysis of several situations in which taxes and the accounting for taxes determines the actions taken by business enterprises. The course does not require a background in financial accounting (the first few courses consist of an overview introduction to GAAP).