This one-day workshop by CLA Events delves into the complexities of accounting for income taxes under SFRS(I) 1-12, offering clarity on both current and deferred taxation. Many finance professionals struggle with these concepts, as they require a deep understanding of tax laws and accounting standards. Through conceptual discussions and practical applications, this session will break down key challenges, including permanent vs. timing differences, taxable/deductible temporary differences, and deferred tax recognition rules. Attendees will gain a structured approach to applying SFRS(I) 1-12, ensuring accurate financial reporting and compliance.
A Highlight of Key Areas:
Examine the Accounting for Income Taxes under SFRS(I) 1-12
- Current vs. deferred tax expense/income
- Current vs. deferred tax liability/asset
- Concepts of permanent and timing differences
Apply the Balance Sheet Liability Approach to Deferred Taxation under FRS 12
- Carrying amount and tax base of an asset and a liability
- Taxable and deductible temporary differences
- Relationship between timing and temporary differences
- Two principles of deferred taxation
- 3-step approach to deferred taxation
Identify the Main Sources of Temporary Differences
- Common scenarios leading to temporary differences
- Impact on financial statements
Understand and Apply the Accounting for Tax Losses Carry Back and Carry Forward
- Accounting treatment for tax loss relief
- Recognition criteria and measurements
Discuss the Initial Deferred Taxation Recognition Exemption for Assets and Liabilities
- Initial recognition exemption for assets/liabilities
- Deferred tax in business combinations (fair value adjustments, consolidation adjustments)
Examine Deferred Taxation on Consolidation in relation to Fair Value Adjustments and Additional Assets and Liabilities Recognized on Initial Acquisition of a Subsidiary
Review the Issues in Measurement, Presentation and Disclosure of Current and Deferred Tax
- Financial statement presentation of current/deferred taxes
- Key disclosure obligations under SFRS(I) 1-12