Demystifying The Magic Of Deferred Taxes

A business may issue financial statements with one profit or loss figure while filing a tax return with a different ending result. These reporting variations are due to differences between the accounting standards and tax regulations.

A business needs to account for deferred taxes when there is a net change in its deferred tax liabilities and assets during a reporting period. The amount of deferred taxes is compiled for each tax-paying component of a business that provides a consolidated tax return.

This online continuing education course covers the essential guidelines to be followed when dealing with temporary differences, carrybacks and carryforwards, and whether to recognize deferred tax assets and liabilities.

Major Topics Covered in this online Accounting CPE webinar:

• Identify the existing temporary differences and carryforwards.
• Determine the deferred tax liability amount for those temporary differences that are taxable, using the applicable tax rate.
• Determine the deferred tax asset amount for any carryforwards involving tax credits.
• The difference between taxes payable (refundable), unrecognized tax benefit liabilities, and deferred tax liabilities (assets).
• Tax credit carryforwards and tax loss carryforwards.
• Valuation allowance for deferred taxes.
• Disclosures.

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