ACCOUNTING 657: ACCOUNTING FOR INCOME TAXES
Syllabus, Summer 2014
Instructor: Assistant Professor Steve Gill
T
ax costs can consume a significant portion of business wealth. Nearly every economic decision
involves tax considerations. The study of taxation is important for any business major, but it has
added importance for students interested in careers in accounting. Taxation is pervasive, complex
and critical to decision-making. This course is primarily the comprehensive study of the financial
accounting for income taxes. In addition, it covers accounting methods and periods for Federal income
tax purposes. About one-quarter of the focus is on rules and regulations surrounding accounting methods
and periods for Federal income tax purposes. The core content of the course is focused on ASC740
(primarily pre-codification FAS109 and FIN48) and applications of preparation, review and audit of a
corporate tax provision. Students interested in a career in either audit or tax should find this course
valuable.
Course Objectives:
The primary objective is that I want to help you understand the role of taxation in economic decision
making and financial reporting. The knowledge and skills provided should facilitate future learning in tax
even if you do not expect to become a tax professional. Students should obtain an extensive and detailed
knowledge of accounting methods and periods and should understand how tax provisions are prepared and
ultimately reflected in audited financial statements as tax expense, deferred taxes and the related footnote
disclosures. In addition, students should gain insight into how a typical tax department functions to
address the tax reporting cycle from provision to compliance.
These skills are often not found as part of a core graduate curriculum in a Masters of Taxation or
Accountancy degree. Detailed exposure to this topic should give a student a competitive advantage in a
career in a public accounting firm.
Learning Objectives:
The MSA program has 6 student learning objectives. This course is intended to address the following
program level objectives:
Research
Desired level: Analysis
Students will be able to use relevant research tools and academic/professional literature to analyze or take
a position in accounting and business situations.
Problem Solving/Critical Thinking/Technical Competence
Desired level: Synthesis
Students will be able to address unstructured problems in the areas of accounting information systems,
financial reporting, or taxation. Unstructured problem solving involves using discipline-specific technical
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knowledge and skills to anticipate issues, formulate hypotheses, problem solve, develop conclusions, or
recognize the strategic role of accounting in business organizations and society.
This course intends to provide students with the opportunity to meet each of the following learning
objectives:
1. Describe the tax accounting methods and periods and financial accounting methods and periods
that apply to revenue and expense recognition.
2. Compare and contrast financial accounting and tax accounting rules to identify common book-totax differences.
3. Utilize the U.S and international guidance for proper accounting and reporting for income taxes in
a realistic and complex setting.
4. Describe the risks and objectives of an audit of the tax provision and tax footnote disclosure.
5. Organize and prepare tax provision schedules and communicate the related income tax footnote to
financial statements.
Meeting the Objectives:
To help you in meeting these objectives, I have provided an array of education elements including:
 Firm guidance on Accounting for Income Taxes revised 2013 by PwC.
 Access to the FASB Codification (http://aaahq.org/ascLogin.cfm) Username - AAA51809
Password – qCSQHJQ (case matters)
 Templates and guest lecturers intended to expand knowledge of topics currently active within the
industry.
 11 three hour and forty minute class meetings during which we will do a variety of teaching and
learning activities;
 One midterm and one final exam;
 Office hours.
Our Learning Community:
Just like any other human relationship, successful relationships in the classroom require mutual respect
and communication. I promise to do my part to foster the positive aspects of this learning community, and
I expect the same in return from each student.
My responsibilities:
 I will be prepared for every class.
 I will attempt to answer any questions that you have, if not immediately, then as soon as possible
thereafter.
 I will try and create a classroom environment that feels safe – safe for you to ask questions without
fear of embarrassment and safe for you to be yourself and focus on learning.
 I will do my best to be fair in my assessment of your performance and assignment of grades and to
report these grades as quickly as possible.
 I will attempt to help you understand what you read in the guidance and also add value to the
course by adding insights and information that is not in the text.
 I will try to continuously improve this class.
Your responsibilities:
 I expect that you will come to class. Your presence in class benefits us all.
 I expect you to come to class prepared.
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I expect you will plan your schedule appropriately to allow sufficient time outside of class to be
successful in this course.
I expect that you will ask questions of me and your colleagues when you do not understand
something you read, something I said, or something one of your colleagues said in class. It is
imperative that any confusion you might have be as temporary as possible. If you are
uncomfortable asking in class, I expect you to contact me in my office.
I expect you to come prepared to meetings during office hours. Try and write out the question or
for possibly quicker responses, try and e-mail the question first.
I expect you to obtain access to e-mail and Blackboard and check both frequently.
Academic Honesty:
Accounting is a profession that depends on trust – individuals, companies and society as a whole place
reliance on the decisions and opinions of accountants. For most of history, accountants were viewed
among the most trusted members of society. In recent years, certain events have eroded this trust.
Rebuilding this trust will take a long time but can be accomplished if future accountants ensure that such
lapses do not recur. I take my role in this effort very seriously (and I hope you will as well).
All assignments are individual assignments and less specifically instructed otherwise. As such, all
homework should be your own work only. If you are unsure as to what is safe to ask of another person,
then ask me first; otherwise, assume it is NOT safe to ask.
The SDSU Standards for Student Conduct (http://www.sa.sdsu.edu/srr/conduct1.html) states that
unacceptable student behavior includes “cheating, plagiarism, or other forms of academic dishonesty that
are intended to gain unfair academic advantage.” Any student suspected of academic dishonesty will be
reported to the SDSU Center for Student Rights and Responsibilities; if found responsible for academic
dishonesty, the student will receive an F in ACCTG 657.
Course Logistics:
Scheduled class times are:
Section Days
1
MW
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Times
18:00-21:40
Prerequisites: This course represents a hybrid between financial accounting topics and tax topics.
Key to tax provision preparation is the ability to understand both the financial accounting rules and
the tax rules related to complex transactions such as stock-based compensations, foreign currency
translation and purchase accounting. To be successful in this course you should have either an
undergraduate degree in accounting or coursework consistent with our ACCTG 620 and 624
courses. Not having those courses will make your experience in the course much more difficult.
Course Material: You are not required to purchase any course materials.
Computers: Once we get started using the provision worksheets, you may find it easier to have
your own laptop with you in class.
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Assessment:
Your primary assessment will be through exams and in-class participation. Exams will be given on the
scheduled exam dates listed in the calendar below.
Assessment
Midterm Exam
Final Exam
Participation
Total for course
% of grade
40
50
10
100
Exams:
Your first exam is on basic income tax provisions. It is scheduled for your normally scheduled class time
and will require you to complete a set of excel schedules that document and compute a basic income tax
provision. I may also ask for specific disclosure items that we have covered in class up to that point.
Your final exam is part in class (tax provision) and part take-home exam that will require extensive
writing and the completion of a more complex provision using the provision model we have used
throughout the semester. I will attempt to provide as much time as necessary so that all students can
complete the take-home by the deadline.
Homework and Participation:
I do not expect to assign homework that is required to be turned in and graded (although I reserve the right
to do so). Preparing for class should typically involve reading the assigned materials and on occasion,
preparing materials for discussion. Your contribution to class discussions is an invaluable part of your
learning experience, and the experiences of the other students in the class. Without your active
involvement in the class meetings, the class will not be a success for any of us. You need to make a
meaningful contribution to the class discussion in at least ten class sessions to earn full points in this
category. Your contributions can be in the form of responses to queries posed during our discussions,
questions that you ask related to our discussions, and presentations of reading summaries and/or research
case conclusions. Contributions are evaluated each class session using a 3-point scale (0=no contribution,
1=satisfactory contribution, 2=exceptional contribution).
Course Calendar:
The course calendar is posted separately in Blackboard. It is a plan for using the available class time we
have this semester. It is my best estimate of how the semester will progress, but from time to time, I may
change it.
About me:
Instructor:
Office
Email:
Office phone:
Office mailbox:
Office hours:
Steve Gill, Ph.D., CPA (MA inactive), Associate Professor
SS3435
sgill@mail.sdsu.edu
(619) 594-6273
Located near entrance to School of Accountancy offices on 2nd floor of SS.
T: 4:00-5:00pm
and other times by appointment
Quick Bio of Prof Gill:
Education:
University of Florida, B.S. Accounting 1989;
Northeastern University, M.S.T. 1996
University of Massachusetts, Ph.D, February 2008
Work experience:
PricewaterhouseCoopers – Audit, Miami, Fl 1990-1992
Ryder Systems, Inc – Internal Audit, Miami, Fl 1993
ThermoElectron, Inc – Internal Audit, Waltham, MA 1993-1994
Eastern Enterprises, Inc – Corporate Accounting, Weston, MA 1994-1996
PricewaterhouseCoopers – Tax Manager, Boston, MA 1996-1998
Digitas, Inc – VP Finance and Tax Director, Boston, MA 1998-2002
Research Interests: Taxation of mutual funds and investment portfolios; internal control in tax financial
reporting.
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