Interim income tax accounting can be complex, but it starts with a foundational concept: estimating the annual effective tax rate (AETR). In this episode, we continue our back-to-basics series with a look at the AETR calculation, including ordinary income, discrete items, when the usual AETR approach may not apply, and interim disclosures.
Key topics and timestamps
- 1:11 — Calculating the AETR and interim tax provision
- 3:54 — Forecasting ordinary income and tax expense
- 6:31 — Defining ordinary income
- 8:36 — Identifying discrete items
- 15:10 — AETR and discrete impacts
- 19:06 — Exceptions to the AETR approach
- 24:34 — Interim tax disclosures
Additional resources
This episode is part of our Back to basics series in[M(1] which we revisit core accounting topics. For more information on interim income tax provisions, see Chapter 16 of PwC’s Income taxes guide. Additionally, follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay informed.
About our guests
Keith Rymer is a partner in PwC’s National Office, with over 30 years of experience having advised clients in various industries on federal, international, and multi-state tax complexities that he leverages to navigate complex tax accounting matters.
Kassie Bauman is a managing director in PwC’s National Office, with over 25 years of experience in both auditing and consulting on complex accounting matters. She is a subject matter specialist in accounting for income taxes under both US GAAP and IFRS.
About our guest host
Pat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.
Transcripts
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
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