Mastering ASC 740: Best Practices for Utility Companies

ASC 740, or Accounting Standards Codification 740, governs how companies report income taxes in their financial statements. For utility companies, complying with ASC 740 presents unique challenges due to the industry's complex regulatory environment and the intricate nature of tax provisions, deferred taxes, and rate-regulated accounting practices. Mastering ASC 740 is essential for ensuring accurate financial reporting, mitigating risk, and satisfying both regulatory and audit requirements.

Vadim LantukhSeptember 23, 2024Lucasystax, accounting, ASC 740, lucasys, lucasys tax, utility industry, cpa, tax software

Tax Reform and ADIT

The Tax Cuts and Jobs Act, signed into law on December 22, 2017, has placed a responsibility on companies to understand the various complexities within the law and to assess the accounting and financial reporting impacts on their organizations. For rate-regulated utilities, certain changes in tax law have put a spotlight on the interplay of rate-making and accounting activities. In particular, the reduction of the top corporate income tax rate from 35% to 21% has initiated a cascade of activities for rate-regulated utilities.

Vadim LantukhJuly 30, 2018tax, accounting, software, lucasys, lucasys tax, Tax reform, adit, tax accounting systems, tax accounting software, enterprise, ASC 740, rate regulated utilities, regulatory liability, aram, rate-regulated, tax division