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| Author : | Jae K. Shim, Ph.D., CPA |
| Course Length : | Pages: 74 ||| Review Questions: 28 ||| Final Exam Questions: 30 |
| CPE Credits : | 6.0 |
| IRS Credits : | 0 |
| Price : | $53.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - Technical - NASBA Registry |
| Primary Subject-Field Of Study: | Accounting - Accounting for Course Id 1778 |
| Description : | Accounting for income taxes is one of the more challenging topics of financial accounting. Corporations must file income tax return following the guidelines developed by the IRS. Because GAAP and tax regulations differ in a number of ways, so frequently do pretax financial income and taxable income. Hence, the amount that a company reports as tax expense will differ from the amount of taxes payable to the IRS. Those differences produce a complex accounting standard. This online income tax course is designed to help you navigate the complexities of this topic and earn CPE accounting skills. It covers the accounting and financial reporting requirements for income taxes discussed in ASC 740 Income Taxes. It addresses the basic principles such as the asset and liability method, assessment for uncertain tax positions, and the effect of temporary differences. It explains the process of accounting for income taxes, including valuation allowance, asset acquisition, intraperiod allocations, and interim reporting. It describes presentation and disclosure requirements. It also provides specific examples to illustrate the application. Relevant references to and excerpts from ASC 740 are discussed throughout the course. |
| Usage Rank : | 0 |
| Release : | 2020 |
| Version : | 1.0 |
| Prerequisites : | Understanding of GAAP. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Tax Accounting
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 23-Jan-2021 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - Technical - NASBA Registry - 1778 |
| Keywords : | Accounting, Accounting, Income, Taxes, v10, cpe, cpa, online course |
| Learning Objectives : |
Course Learning Objectives After studying this course, you will be able to:
2. Identify recognition and measurement requirements for uncertain tax positions 3. Recognize temporary differences and identify how these differences may arise 4. Distinguish between permanent and temporary differences 5. Identify method for computing deferred taxes 6. Recognize basic rules for income taxes in interim reporting 7. Recognize the reporting requirements for income taxes |
| Course Contents : | Chapter 1 - Accounting for Income Taxes Part I. Overview of ASC 740 A. Objectives and Basic Approach B. Scope and Scope Exceptions Example 1: Determining Whether a Tax Is an Income Tax C. Fundamentals of Income Tax 1. Computation of Income Tax Expense or Benefit 2. The Asset and Liability Method What are the Basic Principles? D. Current Standard Setting Activity E. Comprehensive Illustration: Computation of Income Tax Expense Part II. Tax Position Assessment A. Basic Recognition Threshold Example 2: Definition of a Tax Position B. Two-Step Process 1. Recognition of a Tax Position Example 3: Administrative Practices—Asset Capitalization 2. Measurement of a Tax Position Example 4: Measurement with Information about the Approach to Settlement C. Comprehensive Illustrations 1. Recognition of a Tax Position a. Recognition Determinations Made for Each Unit of Account b. Valuation Allowance and Tax-Planning Strategies 2. Measurement of a Tax Position a. Highly Certain Tax Positions b. Measurement of a Tax Position after Settlement of a Similar Position Review Questions - Group 1 Part III. Temporary Differences A. Temporary Differences vs. Permanent Difference 1. Determination of a Temporary Difference a. The Causes Example 5: Temporary Differences b. Common Situations Which Depreciation Method to Use Exhibit A: Typical Temporary Differences 2. Determination a Permanent Difference Example 6: Permanent Differences B. The Reversal of Temporary Differences Example 7: Excluding the Reversal of Existing Taxable Temporary Differences Exhibit B: Examples of Temporary Difference Reversal Patterns C. Comprehensive Illustrations Review Questions - Group 2 Part IV. Recognition and Measurement A. Applicable Tax Rate 1. General Rules Example 8: Determining the Average Graduated Tax Rate 2. AMT Considerations 3. BEAT Considerations FASB Staff Q&A on the Accounting for the BEAT B. Accounting for Deferred Taxes 1. Exceptions to the Recognition of Deferred Taxes 2. Deferred Tax Liabilities Example 9: Determining Deferred Tax Liability 3. Deferred Tax Assets Example 10: Determining Deferred Tax Asset C. Valuation Allowance 1. Sources of Taxable Income Example 11: The Calculation of Future Taxable Income 2. Tax-Planning Strategies 3. More-Likely-Than-Not Criterion Example 12: Applying Valuation Allowance What is the SEC’s Focus? Exhibit C: SEC Comments on Valuation Allowances D. Comprehensive Illustrations 1. Deferred Tax Liability 2. Valuation of Deferred Tax Assets Review Questions - Group 3 Part V. Acquired Temporary Differences A. Asset Acquisition or a Business Combination 1. Initial Screening Test 2. Application of Framework Example 13: The Definition of a Business B. Asset Acquisition Example 14: Transactions Resulting in Deferred Credit C. Business Combinations 1. General Rules Example 15: Tax Effects of Purchase Business Combination 2. Change in Valuation Allowance Example 16: Outside Measurement Period D. Comprehensive Illustrations 1. Asset Acquisition or Business 2. Asset Acquisition a. Asset Acquired for More than Tax Basis b. Asset Acquired with Tax Basis Greater than Book Basis Review Questions - Group 4 Part VI. Intraperiod Tax Allocation A. Allocation to Continuing Operations Example 17: Loss from Continuing Operations with a Gain on Discontinued Operations (Tax Benefit Realizable) B. Operating Loss Tax Benefits C. Items Charged or Credited Directly to Shareholders’ Equity D. Comprehensive Illustrations 1. Tax Allocation between Continuing Operations and Discontinued Operations without NOL Carryforward 2. Tax Allocation between Continuing Operations and Discontinued Operations with NOL Carryforward Part VII. Income Taxes in Interim Periods A. General Rules Example 18: Calculation of the Estimated Annual Effective Tax Rate B. Changes in Tax Laws, Rates, or Status 1. Changes in Tax Laws or Rates Example 19: Change in Tax Rates Example 20: Legislation Effective in a Future Interim Period 2. Change in Tax Status Example 21: Retroactive Change from Nontaxable Status Example 22: Calculation of a Built-in Gain Deferred Tax Liability Exhibit D: The Key Provisions of the Tax Cuts and Jobs Act C. Multiple Tax Jurisdictions Example 23: Ordinary Income in All Jurisdictions D. Comprehensive Illustration: Change in Enacted Tax Rate Review Questions - Group 5 Part VIII. Financial Statement Presentation and Disclosure A. Balance Sheet 1. General Rules Example 24: Offset of Deferred Tax Assets and Liabilities 2. Unrecognized Tax Benefits Example 25: Unrecognized Tax Benefits Related Disclosures 3. Special Areas a. Subsidiaries and Corporate Joint Venture b. Financial Services-Depository and Lending B. Income Statement 1. Classification 2. General Rules C. Summary of Disclosure Requirements D. Comprehensive Illustration: Uncertain Tax Position Part IX. Other Matters A. Transactions Directly between a Taxpayer and a Government B. Separate Financial Statements of a Subsidiary C. Interperiod Tax Allocation Example 26: Interperiod Tax Allocation with Temporary Difference and Beginning Deferred Taxes D. Dividends on Restricted Stock and Options E. Property Taxes Example 27: Reporting Property Taxes F. U.S. GAAP vs. IFRS 1. Income Tax Deferrals 2. Intra-Entity Transfers of Assets (Other than Inventory) Review Questions - Group 6 Glossary |
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