# ASC 740-20-05: Income Taxes — Intraperiod Tax Allocation — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 740-20-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/740/20/#05-overview-and-background)

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##### [740-20-05-1](https://asc.understandingaccounting.org/asc/740/20/#740-20-05-1)

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Subtopic 740-10 addresses the majority of accounting requirements 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."). That Subtopic also establishes the methods and requirements for computing total income tax expense or benefit for an entity.

##### [740-20-05-2](https://asc.understandingaccounting.org/asc/740/20/#740-20-05-2)

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This Subtopic addresses the process of intraperiod tax allocation that allocates total income tax expense or benefit of an entity for a period to different components of comprehensive income and shareholders' equity. This includes allocating income tax expense or benefit for the year to:

1.  a
    
    Continuing operations
    
2.  b
    
    Discontinued operations
    
3.  c
    
    [Subparagraph superseded by Accounting Standards Update No. 2015-01](https://asc.understandingaccounting.org/updates/asu-2015-01/).
    
4.  d
    
    Other comprehensive income
    
5.  e
    
    Items charged or credited directly to shareholders' equity.
    

This Subtopic provides guidance on the method for making those allocations of total income tax expense or benefit and provides several examples and illustrations.