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Are you ready for this? I'm ready. What are we talking about today? Income taxes, Income taxes, Accounting for income taxes. How long do I have? Three minutes. Three hours. All right. Three hours is going to be tight, but we're going to do it three minutes. All right. Income taxes under ASC topic 740 in 3 minutes. So let's break this down. Overall, two real main components to income tax expense on a company's financial statements. We've got current tax expense. We've got deferred tax expense, current tax expense. I'm not going to spend any time on. That's the tax return. Basically, the current tax provision comes straight from the tax return. That's the amount of money the company owes the government for this period. Deferred taxes is what ASC topic 740 spends the most time on. That's what we're going to talk about here for a minute. Accounting for deferred taxes under US, GAAP can be broken into four main steps. What is a temporary difference? What are deferred taxes? Overall, these things arise because there are differences in the accounting requirements under US GAAP for financial statement purposes versus the tax code under the IRS rules. Okay. So for example, you might have an expense that's been recognized in the in the financial statements in the income statement this period, but you don't get a deduction for that item until some future period in the tax return. That's a temporary difference that gives rise to deferred taxes because of the accrual basis of accounting. We need to deal with these in the current period financial statements. So that's what this is all about. So step one, figure out all those temporary differences by looking at the balance sheet and the tax balance sheet versus the GAAP balance sheet, figure out which ones of those give rise to future taxable amounts and which ones give rise to future deductible amounts. Multiply those by an appropriate tax rate and there you have your deferred tax assets and liabilities. We're not done with deferred tax assets, though. Like all other assets, we need to determine whether or not these things can be realized or realized in full and if they cannot, we need to record an appropriate valuation allowance under ASC Topic 740. The threshold is more likely than not. If it is more likely than not based on available evidence that we will be able to realize deferred tax assets, we're good. If not, we need to record an evaluation allowance. It's not an all or nothing proposition. We can record partial valuation allowances in order to be able to realize deferred tax assets. We need taxable income and there's multiple sources of that. Asc topic 740 spends a lot of time talking about those sources in our last little bit here. Uncertain tax positions, a whole nother sort of piece of literature within ASC topic 740 or topic I should say. And this is dealing with areas where we have maybe some gray area in the tax code. There's some uncertainty in how something might be treated and basically a company has taken a tax position. But if there's uncertain enough uncertainty in the tax position they've taken, they may need to recognize an additional liability in their financial statements. We've broken that into eight practical steps. And that summarizes the guidance for uncertain tax positions. That was it. A lot in three minutes. Of course, there's tons more information out there on ASC. Topic 740. We've got a lot of courses on ASC. Topic 740. Come check us out at the revolution. The link will be below. You can see all the online courses we have on the accounting for income taxes. But I can't help myself, Andrew. I got to keep going. Let's get back into those uncertain tax positions and let's go through these eight steps in detail. We're going to make this a three hour course. So step one is to identify all of the. Okay. The tax return. Oh, man, I'm already overshot.