Corporate Tax Filing: Schedule M-3: Part Ii

This course covers the Schedule M-3, Part II filing and reporting requirements.

What you'll learn

Recognize which entities are required to file Schedule M-3.

Identify the basic financial information disclosure requirements.

Identify how to reconcile worldwide consolidated net income, line 4 to net income of includible.

Recognize the disclosure requirements for the total assets and liabilities of includible entities reported on line 12.

Discover how to reconcile retained earnings on Schedule M-2 using line 11, net income of includible corporations.

Requirements

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Description

This course covers Part II of Schedule M-3 including filing and disclosure requirements for Income (Loss) items reported on the financial statements.  Completion of Part II requires the disclosure of detailed information regarding book-tax differences when reporting income (loss) items. In addition to determining how financial income (loss) items differ from how they are reported on the tax return, the differences must be reported as either a “temporary” difference or a “permanent” difference.  Also, in some cases, an income (loss) item must be separately disclosed, even when there is no book-tax difference.  Thus, it is important to “get the numbers right” when completing Part II of Schedule M-3.This course covers the Schedule M-3, Part II filing and reporting requirements, including:The four column reporting format for reconciling book income to taxable income.Adequate and separate disclosure requirements for book-tax differencesDisclosure of common book-tax income differencesDisclosure of financial income items even when there is no book-tax difference.After completing this course you will be better positioned to quickly and accurately complete Schedule M-3, a critical part of your company's corporate tax filing duties.Note:  Part I was covered in a prior course and Part III is covered in subsequent courses.   Also, the Part II line items not covered in this course will be covered in a subsequent Advanced Topics course.

Overview

Section 1: Introduction

Lecture 1 Introduction to Schedule M-3: Part II Compliance and Reporting Issues

Lecture 2 Overview of Part 2

Lecture 3 Line 13 to 17 Interest Income and Cost of Goods Sold

Lecture 4 Tax Insight, Line 17 Cost of Goods Sold

Lecture 5 Lines 23 - 24 Reporting Gains and Losses

Lecture 6 Lines 27 Total Expense Deduction Carryover from Line 36 & 28 Income and Loss

Section 2: Supporting Materials

Lecture 7 Slides: Schedule M-3: Part II Compliance and Reporting Issues

Lecture 8 Schedule M-3: Part II Compliance and Reporting Issues Glossary/Index

Section 3: Review and Test

Anyone interested in Taxes, Accounting, Finance Management and related fields.