Deferred Income Taxes: A Practical Approach 2024

Overview

Accounting for income taxes is now a complex set of standards with computational difficulties and confusion. Particularly concerning private companies. Durring this course we’ll take a practical approach to navigating the maze, simplify basic calculations, and clarify financial statements. Includes a review of the impact of the 2017 Tax Reform Act on calculations.

Highlights

• Sample Schedule M calculations • Sample work papers for deferred tax computations • Comprehensive two-year example and computations • Review and analysis of recurring temporary differences • Identification of the sources to compute “cumulative temporary differences” • Sample workpapers for analysis of tax positions

Prerequisites

None

Designed For

CPAs, accountants and financial professionals.

Objectives

• Develop a practical approach for the application of the basic elements of income tax accounting under FASB codification 740 • We will dispel the myths surrounding deferred income taxes, and provide useful approaches and numerous computations • Identify basic recurring transactions that result in book-tax differences for private companies, and how to accumulate the needed information to simplify the computations • Recognize tax positions taken in tax returns and how those positions are to be evaluated for purposes of accruing the related tax benefits in the financial statements