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[Music] this is a step-by-step example of how to prepare a basic asc 740 tax provision before getting into the details im showing you on screen the background and assumptions for the sample company in this example now im not going to go over these items in detail but you may find it helpful to pause the video and read through them before we go any further now that you understand this companys profile the situation is this year one is ended and its early to mid january of year two and youve been tasked with preparing the companys tax provision you cant do any meaningful work on the tax provision until you have information on the companys income expenses assets and liabilities so with this in mind your first step is to obtain the latest trial balance of the company from the accounting group now if the final trial balance isnt quite ready thats okay take whatever the accounting group can give you right away so that you can start the tax provision process and then you can update
