FAS 109: a primer for non-accountants.


Income tax provisions and Schedule M-1(1) of Form 1120 (Corporation Income Tax Return) bridge the financial accounting world and the Internal Revenue Code. The benefit of understanding an income tax provision and an M-1 is that a preparer can bridge the gap between these two worlds.

This will in turn allow the preparer to talk intelligently with auditors, controllers, chief financial officers, corporate tax consultants, and tax return preparers. Because many controllers and CFOs do not have a tax background, it is important to learn at least the fundamentals of accounting for income taxes for financial accounting purposes.