This course places emphasis on the practical application of IAS 12 Income Taxes, including how tax-effect accounting is applied to a set of financial statements.
Key topics:
- Income tax expense
- Determining income tax expense
- Calculating current tax expense
- Calculating deferred tax expense
- Recognition of DTAs and DTLs
- Offsetting current and deferred tax balances
- Disclosure requirements
- Advanced tax-effect accounting issues
- Items recognised outside of profit and loss
- Asset revaluation and CGT assets
- Motor vehicles and the depreciation car cost limit
- Share issue costs
- Business combinations and fair value adjustment
- Equity carrying amounts and tax-effect accounting
- Compound financial instruments
This course consists of one online course and one online assessment.
Learning objectives
- Calculate income tax expense (on the front page of the income statement)
- Calculate current tax expense (the amount of tax owing to the taxation authorities for the current year), including identifying some of the most common differences between accounting deductions and tax deductions
- Calculate deferred tax expense (which comprises deferred tax assets and deferred tax liabilities)
- Apply the rules contained in IAS 12 with regards to recognition of tax losses and the recoupment of tax losses in a subsequent financial year
- Identify and account for a range of advanced tax-effect accounting issues (such as asset revaluations, share issue costs, luxury cars, the tax-effect accounting implications of consolidation and equity accounting, as well as compound financial instruments)
- Summarise the key financial statement disclosure requirements of IAS 12
Audience
This course is suited to finance professionals who are involved in:
- external reporting
- financial management
- accounting administration
- management accountant
- financial accounting
