5.1 AICPA® Mastery Video Series: IRS Tax-to-GAAP Book / Compensated Absences and Asset Retirement Obligations

In this focused 1-hour session, Jerry Pecaro, lead CPA tutor, clarifies the often-confusing areas of deferred taxes, compensated absences, and asset retirement obligations (AROs)—all high-yield topics for the CPA FAR exam. Through clear explanations, real-world examples, and CPA exam-specific insights, Jerry walks you through key tax-to-book differences and their implications for financial reporting. This is essential viewing for candidates aiming to master temporary vs. permanent differences and properly calculate deferred tax assets, liabilities, and related expense entries.

This video is part of the CPA Core Concept Mastery Series, ideal for targeted review or full-topic reinforcement.

Topics Covered:

• Deferred Tax Asset & Liability
• Deferred Tax Expense
• Permanent vs. Temporary Differences
• Average, Enacted & Effective Tax Rates
• Uncertain Tax Positions
• Compensated Absences
• Asset Retirement Obligations (AROs)