{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/740/30/#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":"740","topic_title":"Income Taxes","subtopic":"740-30","subtopic_title":"Other Considerations or Special Areas","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Undistributed Earnings of Subsidiaries and Corporate Joint Ventures","paragraphs":[{"citation":"740-30-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This guidance addresses presentation in the income statement of specific types of adjustments to <a href=\"/glossary/i/#income-taxes\" class=\"term\" title=\"Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.\"><span>income taxes</span></a>. The specific types of adjustments addressed result from either the recognition or derecognition of deferred income taxes related to exceptions to comprehensive recognition of deferred income taxes arising from investments in subsidiaries and corporate joint ventures.</div> </div>","snippet":"This guidance addresses presentation in the income statement of specific types of adjustments to income taxes. The specific types of adjustments addressed result from either the recognition or derecognition of deferred i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f4f3f5d267aa30b860d9107f6c61fe6baa0158bcd098c8289841e458bc3b7db","downloaded_from":"2026-09-10T01:17:55.307Z","last_downloaded_at":"2026-09-10T01:17:55.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482627","source_sha256":"11df60cba1e51c1f1841b1627eb747c5059c84b710dd9b1f8adbcd1a504159c8"}},{"citation":"740-30-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">Paragraph <a href=\"/asc/740/30/#740-30-25-18\" class=\"xref\">740-30-25-18</a> identifies situations where deferred tax liabilities are not recorded for specific temporary differences. <span class=\"sfragment\" id=\"sfr_1162DAD9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/740/30/#740-30-25-19\" class=\"xref\">740-30-25-19</a> provides that if circumstances change and it becomes apparent that some or all of the undistributed earnings of a subsidiary will be remitted in the foreseeable future but income taxes have not been recognized by the parent entity, it shall accrue as an expense of the current period income taxes attributable to that remittance. If it becomes apparent that some or all of the undistributed earnings of a subsidiary on which income taxes have been accrued will not be remitted in the foreseeable future, the parent entity shall adjust income tax expense of the current period. </span></span></div> </div>","snippet":"Paragraph 740-30-25-18 identifies situations where deferred tax liabilities are not recorded for specific temporary differences. Paragraph 740-30-25-19 provides that if circumstances change and it becomes apparent that s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:781ce353bc2db9ae985d0bfaefc3c4b159457c8a85196a97306d1450150f1cbc","downloaded_from":"2026-09-10T01:17:55.307Z","last_downloaded_at":"2026-09-10T01:17:55.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482627","source_sha256":"11df60cba1e51c1f1841b1627eb747c5059c84b710dd9b1f8adbcd1a504159c8"}},{"citation":"740-30-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_1162E1E5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a parent entity did not recognize income taxes on its equity in undistributed earnings of a subsidiary for the reasons cited in paragraph <a href=\"/asc/740/30/#740-30-25-17\" class=\"xref\">740-30-25-17</a></span></span> <span class=\"sfragment\" id=\"sfr_1162E3D8-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">and the entity in which the investment is held ceases to be a subsidiary, paragraph <a href=\"/asc/740/30/#740-30-25-15\" class=\"xref\">740-30-25-15</a> requires that it shall accrue in the current period income taxes on </span></span> <span class=\"sfragment\" id=\"sfr_1162E518-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">the temporary difference related to its remaining investment in common stock in accordance with the guidance in Subtopic <a altsource=\"GUID-3B0818A8-1B9D-4530-82D4-22D4284B582F.ditamap\" class=\"ditamap\">740-10</a>. </span></span> </div> </div>","snippet":"If a parent entity did not recognize income taxes on its equity in undistributed earnings of a subsidiary for the reasons cited in paragraph 740-30-25-17 and the entity in which the investment is held ceases to be a subs…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aea6a2929a77478c4dc42e4b4c0ef5e17b23860df1c4ce570d99fe7df9fd8225","downloaded_from":"2026-09-10T01:17:55.307Z","last_downloaded_at":"2026-09-10T01:17:55.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482627","source_sha256":"11df60cba1e51c1f1841b1627eb747c5059c84b710dd9b1f8adbcd1a504159c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78c383e759996ad9d176197bbcfee38ccf4294bca59f670bdc425562b4e84442","downloaded_from":"2026-09-10T01:17:55.307Z","last_downloaded_at":"2026-09-10T01:17:55.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482627","source_sha256":"11df60cba1e51c1f1841b1627eb747c5059c84b710dd9b1f8adbcd1a504159c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:029dd4a2662027e085eb51b54c6473bb5cbd937ccaeb5fa87d89faf26d492337","downloaded_from":"2026-09-10T01:17:55.307Z","last_downloaded_at":"2026-09-10T01:17:55.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482627","source_sha256":"11df60cba1e51c1f1841b1627eb747c5059c84b710dd9b1f8adbcd1a504159c8"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:029dd4a2662027e085eb51b54c6473bb5cbd937ccaeb5fa87d89faf26d492337","downloaded_from":"2026-09-10T01:17:55.307Z","last_downloaded_at":"2026-09-10T01:17:55.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482627","source_sha256":"11df60cba1e51c1f1841b1627eb747c5059c84b710dd9b1f8adbcd1a504159c8"}}