The income tax footnote to the GAAP financial statements includes a reconciliation of a corporation's hypothetical tax on book income to its book-tax expense as if it were taxed in full at the applicable U.S. income tax rates.

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The income tax footnote in GAAP financial statements typically includes a reconciliation that shows the difference between the income tax expense calculated at the statutory U.S. federal income tax rate and the actual income tax expense reported in the financial statements. This reconciliation helps explain the reasons for differences between the tax based on accounting profit and the actual tax expense, such as differences due to non-deductible expenses, tax credits, and differences in tax rates.

The Income Tax Footnote to the GAAP Financial Statements Includes