# ASC 270-740-05: Interim Reporting — Income Taxes — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 270-740-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/270/740/#05-overview-and-background)

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##### [270-740-05-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-1)

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This Subtopic addresses the accounting and disclosure for [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") in interim periods. The accounting requirements established in this Subtopic build upon the general requirements for accounting for income taxes established in Subtopic 740-10 as well as the intraperiod tax allocation process established in Subtopic 740-20.

##### [270-740-05-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-2)

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Subtopic 740-10 addresses the computation of total tax expense for an entity. Subtopic 740-20 addresses the process of allocating total [income tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/i/#income-tax-expense-or-benefit "The sum of current tax expense (or benefit) and deferred tax expense (or benefit).") for a period to different components of comprehensive income and shareholders' equity.

##### [270-740-05-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-3)

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Because an interim period is a subset of a longer period, typically a year, incremental requirements for recognition and measurement are established by this Subtopic.

##### [270-740-05-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-4)

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This Subtopic describes:

1.  a
    
    The general computation of interim period income taxes (see paragraphs
    
    [740-270-30-1 through 30-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-1)
    
    )
    
2.  b
    
    The application of the general computation to specific situations (see paragraphs
    
    [740-270-30-22 through 30-28](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-22)
    
    )
    
3.  c
    
    The interim period income taxes requirements applicable to significant unusual or infrequently occurring items and discontinued operations (see Section 740-270-45)
    
4.  d
    
    Special computations applicable to operations taxable in multiple jurisdictions (see paragraph [740-270-30-36](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-36))
    
5.  e
    
    Guidelines for reflecting the effects of new tax legislation in interim period income tax provisions (see paragraphs
    
    [740-270-25-5 through 25-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-5)
    
    )
    
6.  f
    
    Disclosure requirements (see paragraph [740-270-50-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-50-1)).
    

This Subtopic also provides Examples and illustrations in Section 740-270-55.