# ASC 740-10-S55: Income Taxes — Overall — SEC 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/740/10/#sec-55-implementation-guidance-and-illustrations)

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## ASC 740-10-S55: SEC 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/740/10/#sec-55-implementation-guidance-and-illustrations)

SEC content: yes

#### Statutory to Effective Tax Rate Reconciliation

##### [740-10-S55-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-1)

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See paragraph [740-10-S99-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-1), SAB Topic 6.I.1, for SEC Staff views on the rate used in the federal income tax rate to effective tax rate reconciliation.

#### Equity Method Investee Income Taxes

##### [740-10-S55-2](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-2)

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See paragraph [740-10-S99-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-1), SAB Topic 6.I.2, for SEC Staff views concerning required disclosures pertaining to the income taxes of an equity method investee.

#### Disclosures When an Item Is Presented on a Net of Tax Basis

##### [740-10-S55-3](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-3)

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See paragraph [740-10-S99-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-1), SAB Topic 6.I.3, for SEC Staff views on disclosures when certain items are presented net of tax on the income statement.

#### Reconciliation of Tax Recovery in a Loss Year

##### [740-10-S55-4](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-4)

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See paragraph [740-10-S99-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-1), SAB Topic 6.I.4, for SEC Staff views on whether a reconciliation of a tax recovery is required in a loss year.

#### Foreign Registrants

##### [740-10-S55-5](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-5)

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See paragraph [740-10-S99-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-1), SAB Topic 6.I.5, for SEC Staff views on required disclosures for foreign registrants.

#### Reconciliation of Certain Securities Gains and Losses to the Statutory Federal Income Tax Rate

##### [740-10-S55-6](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-6)

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See paragraph [740-10-S99-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-1), SAB Topic 6.I.6, for SEC Staff views on the necessity of a reconciliation of certain securities gains and losses to the statutory federal income tax rate.

#### Disclosure When Income Tax Expense Is Allocated to More than One Financial Statement Caption

##### [740-10-S55-7](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-7)

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See paragraph [740-10-S99-1](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-1), SAB Topic 6.I.7, for SEC Staff views on whether an overall presentation is acceptable when income tax expense is allocated to more than one caption in the financial statements.

#### Income Tax Accounting Implications of the Tax Cuts and Jobs Act

##### [740-10-S55-8](https://asc.understandingaccounting.org/asc/740/10/#740-10-S55-8)

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See paragraph [740-10-S99-2A](https://asc.understandingaccounting.org/asc/740/10/#740-10-S99-2A), SAB Topic 5.EE, for SEC Staff views on income tax accounting implications of the Tax Cuts and Jobs Act.