Course detail

E-mail a friend with details of this course.
Download a PDF description of this course.

Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

Go To Top

Income taxes are often significant numbers in financial statements, which impact on an entity’s reported financial position and performance. The objective of accounting for income taxes is to reflect the current and future tax effects of all transactions already reported in the financial statements. The amount of taxes currently payable or recoverable varies depending on tax law in an entity’s jurisdiction; having established the relevant amount, accounting for current tax is relatively simple. Greater complexity arises in recognising and measuring the longer-term deferred tax effects of transactions which represent temporary differences.

IAS 12 Income Taxes is the principal source of guidance on accounting for income taxes in IFRS. It is supplemented by SIC-25 Income Taxes – Changes in the Tax Status of an Entity or its Shareholders. Income taxes was an agenda project in the Memorandum of Understanding between the IASB and the Financial Accounting Standards Board but progress was halted in 2010 to allow resources to be diverted to more urgent topics; The IASB has included the topic as a research project in its Work Plan.

This course provides comprehensive coverage of IAS 12 governing the recognition, measurement, presentation and disclosure of income taxes. The program is designed to guide delegates through the complex technical issues associated with accounting for income taxes and also includes an overview of differences between current IFRS and US GAAP requirements.

The course answers questions such as:

• What are the principles underlying accounting for income taxes and how are they applied?

• What are the issues and exceptions involved in accounting for income taxes?

• How are deferred tax liabilities and assets recognised, measured and presented in IFRS financial statements?

• What disclosures are required?

• How should uncertain tax positions be reflected?

• How should specific transactions, such as share-based payments, be accounted for?

Prerequisites

Go To Top

An understanding of the general principles and IFRS standards. Participants who have less familiarity with IFRS may want to combine this course with a refresher or a review of the core IFRS standards; for example, by attending Course 1010: IFRS Fundamentals. No advance preparation is required for this course.

Course Level

Go To Top

Intermediate

Topics

Go To Top

• General principles
• Scope and objectives
• Definitions – tax base
• Current tax
• Current tax assets and liabilities; recognition and measurement
• Recognition in and outside profit or loss
• Deferred tax
• General principles
• Tax bases of assets, liabilities and deferred revenue
• Treatment of taxable and deductible temporary differences
• Exceptions to the recognition rules
• Recognition of deferred tax liabilities
• Recognition of deferred tax assets
• Sources of temporary deductible differences
• Unused tax losses and tax credits and availability of future profits
• Assessment of recoverability
• Measurement
• Enacted and substantively enacted tax rates
• Reflecting different manners of recovery – limited amendment to IAS 12
• Presentation and disclosure in the financial statements
• Special applications
• Tax credits
• Leases
• Provisions and employee benefits
• Share-based payments
• Revaluations
• Investment properties
• Intangible assets
• Financial instruments
• Investments in subsidiaries, associated and joint ventures/arrangements
• Treatment in consolidated financial statements
• Business combinations
• Purchased goodwill
• Unrecognised tax losses
• Intra-group transactions
• Uncertain tax positions
• Issues arising on first-time adoption
• Treatment in interim financial reports
• Overview of differences between IFRS and US GAAP (ASC Topic 740)

Course Benefits

Go To Top

• Apply the principles of IAS 12
• Recognise and measure deferred tax assets and liabilities
• Understand the practicalities involved in accounting for income taxes
• Learn the methods that may be applied in accounting for complex tax situations
• Know how to identify and account for uncertain tax positions
• Comply with IFRS presentation and disclosure requirements

Teaching Method

Go To Top

• Explanation of IFRS income tax accounting requirements using practical examples
• Application demonstrations using clear illustrations
• Presentation of deferred tax calculation models
• Use of real-world financial statements to illustrate complex issues
• Presentation and discussion of model financial statements, including disclosures
• Interactive participation is encouraged
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Bring This Course In House

Go To Top

To bring this course in-house please contact us and we will be pleased to assist.

Continuing Professional Education (CPE)

Go To Top

8 hours

Venue

Go To Top

All of our Zurich seminars take place in 4 star professional conference facilities, usually in city-centre downtown hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided. .