IAS 12 Income taxes
Course Description
The income tax payable derives from the taxable income. But taxable profit does not necessarily equal to accounting profit. What happens when the taxable profit is different from the profit of the IFRS financial statements? Will the taxes payable be disclosed as too high or to low in the IFRS financial statements? No, deferred taxes come into play.
This course helps you understand what exactly deferred taxes are, when they arise, how current and future income taxes are recognised and measured, how taxes are presented and which disclosures are required related to income taxes, according to IAS 12 standard. In addition to the accounting of deferred taxes, the accounting of current taxes are also briefly discussed. The course includes practical examples and interim tests to enhance understanding.
Course Structure
The following topics are covered in this eLearn:
- Introduction
- Current taxes, origin of deferred taxes
- Recognition: deferred tax liabilities, deferred tax assets, recognition exemptions
- Losses carried forward
- Measurement: initial measurement, determination of total tax rate, recoverability
- Accounting: items recognised in profit and loss, other comprehensive income, equity
- Disclosures
- Final quiz
Should Attend
This course is intended for professionals in financial and actuarial functions.
Prerequisites
There are no prerequisites to follow this eLearn
Assessment
A final quiz will test your knowledge.
Key-Features
This course will enable you to:
- understand the concept of deferred taxes and current taxes
- identify situations when there is a need to account for deferred taxes and learn about recognition exemptions
- define whether a deferred tax asset or a deferred tax liability arose
- recognise effect of under or overestimation of current tax balances in previous years
- define correct journals for current and deferred income taxes
- review IAS 12 standard’s disclosure requirements
Course Structure
The following topics are covered in this eLearn:
- Introduction
- Current taxes, origin of deferred taxes
- Recognition: deferred tax liabilities, deferred tax assets, recognition exemptions
- Losses carried forward
- Measurement: initial measurement, determination of total tax rate, recoverability
- Accounting: items recognised in profit and loss, other comprehensive income, equity
- Disclosures
- Final quiz
Should Attend
This course is intended for professionals in financial and actuarial functions.
Prerequisites
There are no prerequisites to follow this eLearn
Assessment
A final quiz will test your knowledge.
Key-Features
This course will enable you to:
- understand the concept of deferred taxes and current taxes
- identify situations when there is a need to account for deferred taxes and learn about recognition exemptions
- define whether a deferred tax asset or a deferred tax liability arose
- recognise effect of under or overestimation of current tax balances in previous years
- define correct journals for current and deferred income taxes
- review IAS 12 standard’s disclosure requirements
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