Besides messing with FIFO/LIFO and depreciation (useful life, dd method), what are some other ways an income tax form can be manipulated to decrease actual income?
put non deductible expense as tax deductible, why did you ask? write down assets
what about capitalizing instead of expensing…or using a different number of years for tax expense on your tax income statement vs. the company books (balance sheet…)
aggressive write downs.
Currency Translation adjustments…Temporal vs. Current Method. Pension Expenses ^ Taxable Income down.
But how would you manipulate pension expenses?
Aggresive or conservative estimates effect several portions of the Pension expense. Assumptions of turnover, length of service, and increase in compensation all effect the pension obligation. Changes would effect the actuarial loss or gains. Current Service Cost represents the amount of the increase from current period to reach assumptions. Interest Expense is based off the liability. Lower Expected Return Increases Expense. Past Service Costs Amortization under GAAP allows for smoothing of Expense from OCI to Pension Expense. The period could be fully recognized and this would increase Expense. Hope that helps.