Accounting for income taxes requires proper understanding of current and deferred taxation. For many finance professionals, the concepts underlying current and deferred taxation are not intuitive. Applying these concepts requires a thorough knowledge of the relevant income tax laws as well as the requirements of FRS 12 Income Taxes. The concepts and application of deferred taxation under FRS 12 have always been rather challenging even for the more experienced finance professionals.
Wolters Kluwer presents a one-day workshop to share some insights into the more challenging aspects of accounting for current and deferred taxation under FRS 12. Through a combination of conceptual discussions and illustrative applications, the workshop will address key accounting issues and requirements of current and deferred taxation under FRS 12.
A Highlight of Key Areas:
Examine the Accounting for Income Taxes under FRS 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
Understand and Apply the Accounting for Tax Losses Carry Back and Carry Forward
Discuss the Initial Deferred Taxation Recognition Exemption for Assets and Liabilities
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