# ASC 270-740-45: Interim Reporting — Income Taxes — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/270/740/#45-other-presentation-matters) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:7387dbff71738c1c1c42d6d229e26b04e18a1eea9c97bde226aae629220f556f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/270/740/#45-other-presentation-matters) SEC content: no ##### [270-740-45-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:61ef78a8510b42912fc9b2c1e58066999aebef0635e7049612b23004139274cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 740-20 establishes requirements to allocate 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).") 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. ##### [270-740-45-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:659344d37ac4dcb9d09898aedf12990d229521e77020065b523d205fbeb29349 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [270-740-45-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:220e5068d7f436fc6a149a77fd122da400035e0e7b391ceea76378dff3bb1e0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)](https://asc.understandingaccounting.org/glossary/t/#tax-or-benefit "Tax (or benefit) is the total income tax expense (or benefit), including the provision (or benefit) for income taxes both currently payable and deferred.") 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](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-12) 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](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-7) 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](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-52)) for an illustration of the income statement display of these items. ##### [270-740-45-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:7c2d637c307f888109f7fbe0990f1b03dca27d6cc02d4dd1c6130a19f1d70763 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-20-45-3](https://asc.understandingaccounting.org/asc/740/20/#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](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") 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. ##### [270-740-45-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:6752b90c27d17a5c7c04a3ad667950cca05013b98b8459202549e6b81ab3c567 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-270-25-11](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-11) 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. #### Specific Requirements Applicable to Discontinued Operations ##### [270-740-45-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:b5d8b0519700b10d68be75ffc0fdb2f131ebfc1b429e9ef00a3d78b40a3f8c5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses specific requirements for the intraperiod allocation of [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 when there are discontinued operations. ##### [270-740-45-7](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:a1e835aa76e3403a9a8877e5cf92728d3c7b903792cfb37101edb4249fab63e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity reports discontinued operations, the computations described in paragraphs [740-270-25-12 through 25-14](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-12) , [740-270-30-11 through 30-13](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-11) , and [740-270-45-2 through 45-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-2) 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](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) are met. ##### [270-740-45-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:8a02d4e1a10a4876b9b6399be2ef266503cd3f279cdb4bc8388992e94f007d2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) are met occurs, will have been included in [ordinary income (or loss)](https://asc.understandingaccounting.org/glossary/o/#ordinary-income-or-loss "Ordinary income (or loss) refers to income (or loss) from continuing operations before income taxes (or benefits) excluding significant unusual or infrequently occurring items. Discontinued operations and cumulative effects of changes in accounting principles are also excluded from this term. The term is not used in the income tax context of ordinary income versus capital gain. The meaning of unusual or infrequently occurring items is consistent with their use in the definitions of the terms unusual nature and infrequency of occurrence.") 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](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-12) ; [740-270-30-11 through 30-13](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-11) ; and [740-270-45-2 through 45-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-2) for any unusual or infrequently occurring items of the discontinued operation. See Example 4 (paragraph [740-270-55-29](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-29)) for an illustration of accounting for income taxes applicable to income (or loss) from discontinued operations at an interim date.