Accounting for Taxes

This program covers the principles and reporting of taxes in the financial statements.
Accounting for taxes is confusing when first encountered, especially deferred taxes, but everything will fall into place once you “get it.” Consequently, it is worth investing time to become truly comfortable with the fundamentals of accounting for taxes. Once you are there, layering on further tax complexities is relatively straightforward.

• Marginal tax rates and effective tax rates
• Normalizing (“cleaning”) the ETR
• Finding the MTR in the annual report
• When to use which tax rate
• Timing vs. permanent timing differences
• What causes deferred tax liabilities
• What causes deferred tax assets
• How the accounting for deferred taxes works
• What are tax losses
• How they are recovered - carry forward and carry back
• How losses are reported in the published financial statements
• Deferred tax implications of asset step ups