Accounting for Income Taxes in Financial Statements
In light of recent legislation changing the Internal Revenue Code, many accountants are realizing they are not quite "up to speed" on the accounting for income taxes, particularly the handling of deferred tax assets and deferred tax liabilities. This webinar addresses most issues specifically covered in FASB Statement No. 109 (ASC 740.10) dealing with current and deferred income taxes. It puts the focus on unusual, one-time entries (i.e. large unexpected gains and/or losses such as tax effects of repatriation dollars) that need to be made as a result of tax law changes. It is timely and should be welcomed by those struggling with accounting for income taxes. It is especially useful for those closing the books and preparing financial statements for 12/31/17. It also reestablishes the accounting for income tax rules and their importance going forward in 2018 and beyondLearning ObjectivesAccounting for current provision, deferred provision Temporary difference and how they “turn around” or reversePermanent difference and how they are ignored for deferred tax purposesNet operating losses – carrybacks, carryforwardsTax rate considerationsFuture rates/revisions of future ratesSpecial issuesAMTIntra-period tax allocationThe historical problems associated with accounting for income taxesHow the balance sheet approach dramatically changed income tax accountingThe fundamentals surrounding the accounting for income taxesFuture activities and their impact on deferred tax assets and/or liabilitiesThe different handling of temporary differences and permanent differencesThe creation of deferred tax balance sheet accountsThe need for a valuation account when it is more likely than not that the net deferred tax asset will not be realized in fullBasic provisions of SFAS 109 (ASC 740-10)The handling (from creation to write-off) of deferred tax assets and deferred tax liabilitiesNeed for a valuation account in certain circumstancesSpecific examples of differences – temporary and permanentSpecial topics such as accounting for net operating losses, multiple tax rates, etc.Who Should AttendTax accountants Auditors – internal Auditors – external Senior management CPAs – External Financial statement preparersFinancial statement reviewersControllers’ personnelDirectorsAudit committee membersTreasury personnel
In light of recent legislation changing the Internal Revenue Code, many accountants are realizing they are not quite "up to speed" on the accounting for income taxes, particularly the handling of deferred tax assets and deferred tax liabilities.
This webinar addresses most issues specifically covered in FASB Statement No. 109 (ASC 740.10) dealing with current and deferred income taxes. It puts the focus on unusual, one-time entries (i.e. large unexpected gains and/or losses such as tax effects of repatriation dollars) that need to be made as a result of tax law changes. It is timely and should be welcomed by those struggling with accounting for income taxes. It is especially useful for those closing the books and preparing financial statements for 12/31/17. It also reestablishes the accounting for income tax rules and their importance going forward in 2018 and beyond
Learning Objectives
- Accounting for current provision, deferred provision
- Temporary difference and how they “turn around” or reverse
- Permanent difference and how they are ignored for deferred tax purposes
- Net operating losses – carrybacks, carryforwards
- Tax rate considerations
- Future rates/revisions of future rates
- Special issues
- AMT
- Intra-period tax allocation
- The historical problems associated with accounting for income taxes
- How the balance sheet approach dramatically changed income tax accounting
- The fundamentals surrounding the accounting for income taxes
- Future activities and their impact on deferred tax assets and/or liabilities
- The different handling of temporary differences and permanent differences
- The creation of deferred tax balance sheet accounts
- The need for a valuation account when it is more likely than not that the net deferred tax asset will not be realized in full
- Basic provisions of SFAS 109 (ASC 740-10)
- The handling (from creation to write-off) of deferred tax assets and deferred tax liabilities
- Need for a valuation account in certain circumstances
- Specific examples of differences – temporary and permanent
- Special topics such as accounting for net operating losses, multiple tax rates, etc.
Who Should Attend
- Tax accountants
- Auditors – internal
- Auditors – external
- Senior management
- CPAs – External
- Financial statement preparers
- Financial statement reviewers
- Controllers’ personnel
- Directors
- Audit committee members
- Treasury personnel
