Tax Accounting Considerations Applicable to the Cannabis Industry 2024

Overview

This course will highlight tax accounting considerations such as ASC 740 application to the GAAP and tax treatment of various property, plant and equipment including measuring and recognizing timing difference impacts on the tax accrual and related footnotes. ASC 740 application of preparing or reviewing the current tax payable calculation of permanent and temporary differences by being aware of cost of goods sold and selling, general and administrative expenses will be discussed. We’ll discuss asset acquisition or business combination in relation to PPA accounting, as well as differing tax positions between the audited financial statement and tax returns. Considerations around the more-likely-than-non-standard vs reasonable basis will be covered.

Highlights

• ASC 740 applicability to property, plant and equipment.
• ASC 740 applicability to asset acquisition and business combinations.
• ASC 740 application for differing positions between the AFS and tax returns.
• ASC 740 applicability to the current tax payable calculation and related permanent and temporary classifications.

Prerequisites

None

Designed For

CPAs, Attorneys, Enrolled Agents, Financial Professionals, and anyone interested in the fundamentals of this industry.

Objectives

• Determine tax accounting considerations
• Recognize application of 280E and ASC 740
• Identify differences between the AFS and tax returns along with application of ASC 740 from a deferred tax perspective

Preparation

Working knowledge of ASC 740 preferred.

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by the California Education Foundation (CalCPA). Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.