Accounting for outside tax basis differences

Accounting for outside basis differences can be complex. In order to get the accounting right, it’s important to first understand the difference between inside basis and outside basis. Help is on the way as Jennifer Spang and Kassie Bauman join Heather Horn to walk you through the basics and then dive a little deeper into the specific considerations.  Topics include:0:50 - The basics. Before jumping into some of the complexities, we start with the basics: what is an outside basis difference? 5:35 - Domestic vs. foreign classification. A mix of domestic and foreign entities comprises the legal entity structure of a multinational organization. Kassie helps explain this important distinction in the tax classification.6:32 - Deferred tax liability exceptions. There are various exceptions to recording deferred tax liabilities. Jenn provides examples. 9:13 - Deferred tax asset exceptions. Are there any special considerations for deferred tax assets? Kassie explains.10:31 - Measurement considerations. Measuring deferred tax assets or liabilities is an especially complex area. Jenn walks through what companies should consider.Jennifer Spang is a tax partner in PwC's National Office specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters.  Kassie Bauman is a managing director in PwC's National office who consults on tax accounting under US GAAP and IFRS. Kassie has more than 20 years of auditing and accounting experience, including almost a decade of experience addressing complex technical accounting matters as part of our National office.  Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

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