Provision for income tax expense ASC 740: A teaching note

•Income tax provisions incorporate both accounting standards and tax regulations.•Tax provisions require higher level critical thinking.•The project requires students to use of the Accounting Standards Codification.

This project requires students to think critically to synthesize concepts they learned in their financial reporting and tax classes. They will use and interpret accounting standards to prepare tax provisions, comparative financial statements and the appropriate footnote disclosures. Even a simple tax provision results in a challenging project.