Back to basics: Interim tax provisions

PwC's accounting podcast · Sep 22, 2026 · 29m · transcript

Interim income tax accounting can be complex, but it starts with a foundational concept: estimating the annual effective tax rate (AETR). In this episode, we continue our back-to-basics series with a look at the AETR calculation, including ordinary income, discrete items, when the usual AETR approach may not apply, and interim disclosures.

Key topics and timestamps

1:11 — Calculating the AETR and interim tax provision

3:54 — Forecasting ordinary income and tax expense

6:31 — Defining ordinary income

8:36 — Identifying discrete items

15:10 — AETR and discrete impacts

19:06 — Exceptions to the…