{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/270/740/#45-other-presentation-matters","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"270","topic_title":"Interim Reporting","subtopic":"270-740","subtopic_title":"Income Taxes","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"270-740-45-1","para":"45-1","html":"
Subtopic 740-20 establishes requirements to allocate total income tax expense (or benefit) of an entity for a period to different components of comprehensive income and shareholders' equity. That process is referred to as intraperiod tax allocation. This Section addresses that required allocation of income tax expense (or benefit) in interim periods.
","snippet":"Subtopic 740-20 establishes requirements to allocate total income tax expense (or benefit) of an entity for a period to different components of comprehensive income and shareholders' equity. That process is referred to a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:61ef78a8510b42912fc9b2c1e58066999aebef0635e7049612b23004139274cd","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},{"citation":"270-740-45-2","para":"45-2","html":"
Section 740-20-45 describes the method of applying tax allocation within a period. The tax allocation computation shall be made using the estimated fiscal year ordinary income together with unusual items, infrequently occurring items, and discontinued operations for the year-to-date period.
","snippet":"Section 740-20-45 describes the method of applying tax allocation within a period. The tax allocation computation shall be made using the estimated fiscal year ordinary income together with unusual items, infrequently oc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:659344d37ac4dcb9d09898aedf12990d229521e77020065b523d205fbeb29349","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},{"citation":"270-740-45-3","para":"45-3","html":"
Discontinued operations that will be presented net of related tax effects in the financial statements for the fiscal year shall be presented net of related tax effects in interim financial statements. Unusual or infrequently occurring items that will be separately disclosed in the financial statements for the fiscal year shall be separately disclosed as a component of pretax income from continuing operations, and the tax (or benefit) related to those items shall be included in the tax (or benefit) related to continuing operations. See paragraphs
740-270-25-12 through 25-14
for interim period recognition guidance when an entity has a significant unusual or infrequently occurring loss or a loss from discontinued operations. See paragraphs
740-270-45-7 through 45-8
for the application of interim period allocation requirements to recognized income tax expense (or benefit) and discontinued operations. See Example 7 (paragraph 740-270-55-52) for an illustration of the income statement display of these items.
","snippet":"Discontinued operations that will be presented net of related tax effects in the financial statements for the fiscal year shall be presented net of related tax effects in interim financial statements. Unusual or infreque…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:220e5068d7f436fc6a149a77fd122da400035e0e7b391ceea76378dff3bb1e0c","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},{"citation":"270-740-45-4","para":"45-4","html":"
Paragraph 740-20-45-3 requires that the manner of reporting the tax benefit of an operating loss carryforward recognized in a subsequent year generally is determined by the source of the income in that year and not by the source of the operating loss carryforward or the source of expected future income that will result in realization of a deferred tax asset for the operating loss carryforward. The tax benefit is allocated first to reduce tax expense from continuing operations to zero with any excess allocated to the other source(s) of income that provides the means of realization, for example, discontinued operations, other comprehensive income, and so forth. That requirement also pertains to reporting the tax benefit of an operating loss carryforward in interim periods.
","snippet":"Paragraph 740-20-45-3 requires that the manner of reporting the tax benefit of an operating loss carryforward recognized in a subsequent year generally is determined by the source of the income in that year and not by th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c2d637c307f888109f7fbe0990f1b03dca27d6cc02d4dd1c6130a19f1d70763","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},{"citation":"270-740-45-5","para":"45-5","html":"
Paragraph 740-270-25-11 establishes the requirement that when the tax effects of losses that arise in the early portions of a fiscal year are not recognized in that interim period, no tax provision shall be made for income that arises in later interim periods until the tax effects of the previous interim losses are utilized.
","snippet":"Paragraph 740-270-25-11 establishes the requirement that when the tax effects of losses that arise in the early portions of a fiscal year are not recognized in that interim period, no tax provision shall be made for inco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6752b90c27d17a5c7c04a3ad667950cca05013b98b8459202549e6b81ab3c567","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e83f7d7f8a86ef69b2c3cbf686bdfaf318d1a2c1be459c2c9777c201494e2053","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},{"block":null,"heading":"Specific Requirements Applicable to Discontinued Operations","paragraphs":[{"citation":"270-740-45-6","para":"45-6","html":"
This guidance addresses specific requirements for the intraperiod allocation of income taxes in interim periods when there are discontinued operations.
","snippet":"This guidance addresses specific requirements for the intraperiod allocation of income taxes in interim periods when there are discontinued operations.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5d8b0519700b10d68be75ffc0fdb2f131ebfc1b429e9ef00a3d78b40a3f8c5a","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},{"citation":"270-740-45-7","para":"45-7","html":"
When an entity reports discontinued operations, the computations described in paragraphs
740-270-25-12 through 25-14
,
740-270-30-11 through 30-13
, and
740-270-45-2 through 45-3
shall be the basis for the tax (or benefit) related to the income (or loss) from operations of the discontinued operation before the date on which the criteria in paragraph 205-20-45-1E are met.
","snippet":"When an entity reports discontinued operations, the computations described in paragraphs 740-270-25-12 through 25-14, 740-270-30-11 through 30-13, and 740-270-45-2 through 45-3 shall be the basis for the tax (or benefit)…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a1e835aa76e3403a9a8877e5cf92728d3c7b903792cfb37101edb4249fab63e3","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},{"citation":"270-740-45-8","para":"45-8","html":"
Income (or loss) from operations of the discontinued operation, prior to the interim period in which the date on which the criteria in paragraph 205-20-45-1E are met occurs, will have been included in ordinary income (or loss) of prior periods and thus will have been included in the estimated annual effective tax rate and tax (or benefit) calculations described in Sections 740-270-30 and 740-270-35 applicable to ordinary income. The total tax (or benefit) provided in the prior interim periods shall not be recomputed but shall be divided into two components, applicable to the remaining ordinary income (or loss) and to the income (or loss) from operations of the discontinued operation as follows. A revised estimated annual effective tax rate and resulting tax (or benefit) shall be computed, in accordance with Sections 740-270-30 and 740-270-35 applicable to ordinary income, for the remaining ordinary income (or loss), on the basis of the estimates applicable to such operations used in the original calculations for each prior interim period. The tax (or benefit) related to the operations of the discontinued operation shall be the total of:
  1. a
    The difference between the tax (or benefit) originally computed for ordinary income (or loss) and the recomputed amount for the remaining ordinary income (or loss)
  2. b
    The tax computed in accordance with paragraphs
    740-270-25-12 through 25-14
    ;
    740-270-30-11 through 30-13
    ; and
    740-270-45-2 through 45-3
    for any unusual or infrequently occurring items of the discontinued operation.
See Example 4 (paragraph 740-270-55-29) for an illustration of accounting for income taxes applicable to income (or loss) from discontinued operations at an interim date.
","snippet":"Income (or loss) from operations of the discontinued operation, prior to the interim period in which the date on which the criteria in paragraph 205-20-45-1E are met occurs, will have been included in ordinary income (or…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a02d4e1a10a4876b9b6399be2ef266503cd3f279cdb4bc8388992e94f007d2b","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc885726a5e34d22ea0172c863bb6a3c16e5b68d1a33e0c123daee291ac44aed","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7387dbff71738c1c1c42d6d229e26b04e18a1eea9c97bde226aae629220f556f","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7387dbff71738c1c1c42d6d229e26b04e18a1eea9c97bde226aae629220f556f","downloaded_from":"2026-09-09T23:20:40.016Z","last_downloaded_at":"2026-09-09T23:20:40.016Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477349","source_sha256":"09d12f32fc63c897fcc7b804c351d3ee2bf3fdf8aa5eed1f4eef9df3368a914d"}}