Income tax accounting refresh: Business combinations

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Every Tuesday in May, Jennifer Spang is taking over the podcast to share the latest on income tax accounting — recent global and US tax policy developments, standard setting activity, and tax accounting considerations related to common transactions, such as business combinations and spin-offs.

To continue the series, Heather and Jenn are joined by Kassie Bauman, a managing director in PwC’s National Office, to share their insights on income tax accounting for business combinations.

In this episode, you’ll hear discussion of:

• 2:01 - An overview of the applicable guidance and a summary of steps to take when assessing tax considerations of a business combination
• 7:13 - The importance of the tax status of the entities involved and distinguishing between taxable and non-taxable transactions 
• 20:53 - Identifying and measuring temporary tax differences related to business combinations
• 23:36 - Deferred taxes associated with goodwill and considerations on the valuation allowance assessment
• 34:26 - Other common tax accounting considerations in business combinations including the measurement period, uncertain tax positions, and indemnifications 
• 37:32 - Final thoughts, including deal economics considering tax 

For more information, read our Business combinations and Income taxes guides, and check out a prior podcast on accounting for business combinations. 

Jennifer Spang is PwC’s National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters. 

Kassie Bauman is a managing director in PwC's National Office who consults on tax accounting under US GAAP and IFRS. Kassie has more than 20 years of auditing and accounting experience addressing complex technical accounting matters. 

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].