{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/740/852/#05-overview-and-background","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":"740-852","subtopic_title":"Reorganizations","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"740-852-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides incremental guidance on accounting for <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> if an entity: <ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Has filed a <a href=\"/glossary/p/#petition\" class=\"term\" title=\"A document filed in a court of bankruptcy, initiating proceedings under the Bankruptcy Code.\"><span>petition</span></a> with the <a href=\"/glossary/b/#bankruptcy-court\" class=\"term\" title=\"The United States Bankruptcy Court is an adjunct of the United States District Courts. Under the jurisdiction of the District Court, the Bankruptcy Court is generally responsible for cases filed under Chapters 7, 11, 12, and 13 of the Bankruptcy Code.\"><span>Bankruptcy Court</span></a> and expects to reorganize as a going concern under <a href=\"/glossary/c/#chapter-11\" class=\"term\" title=\"A reorganization action, either voluntarily or involuntarily initiated under the provisions of the Bankruptcy Code, that provides for a reorganization of the debt and equity structure of the business and allows the business to continue operations. A debtor may also file a plan of liquidation under Chapter 11.\"><span>Chapter 11</span></a> of the <a href=\"/glossary/b/#bankruptcy-code\" class=\"term\" title=\"A federal statute, enacted October 1, 1979, as title 11 of the United States Code by the Bankruptcy Reform Act of 1978, that applies to all cases filed on or after its enactment and that provides the basis for the current federal bankruptcy system.\"><span>Bankruptcy Code</span></a> and qualifies for fresh-start reporting under paragraph <a href=\"/asc/852/10/#852-10-45-19\" class=\"xref\">852-10-45-19</a></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Has undertaken a corporate readjustment procedure known as a quasi-reorganization.</div></li></ol></div></div>","snippet":"This Subtopic provides incremental guidance on accounting for income taxes if an entity:\n(a) Has filed a petition with the Bankruptcy Court and expects to reorganize as a going concern under Chapter 11 of the Bankruptcy …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28202d94f58d8fea840c454850f3df47b90b2498af2c1012f0d8223f261bf982","downloaded_from":"2026-09-10T01:19:04.485Z","last_downloaded_at":"2026-09-10T01:19:04.485Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479237","source_sha256":"bdae0780b5b44475df9e10c5731acbff92c7e470bbd012e348ccdaef65f6ee1c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:190e3af91162888381547d52fa4b6171299aa86e81cbe11283daf0828bb1de4e","downloaded_from":"2026-09-10T01:19:04.485Z","last_downloaded_at":"2026-09-10T01:19:04.485Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479237","source_sha256":"bdae0780b5b44475df9e10c5731acbff92c7e470bbd012e348ccdaef65f6ee1c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d5be85bd20ac56cf6529c7afdf1b8f4dc1d07c69106944c922effc981182571","downloaded_from":"2026-09-10T01:19:04.485Z","last_downloaded_at":"2026-09-10T01:19:04.485Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479237","source_sha256":"bdae0780b5b44475df9e10c5731acbff92c7e470bbd012e348ccdaef65f6ee1c"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d5be85bd20ac56cf6529c7afdf1b8f4dc1d07c69106944c922effc981182571","downloaded_from":"2026-09-10T01:19:04.485Z","last_downloaded_at":"2026-09-10T01:19:04.485Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479237","source_sha256":"bdae0780b5b44475df9e10c5731acbff92c7e470bbd012e348ccdaef65f6ee1c"}}