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
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: