This course has been retired and is no longer available. Please see our latest courses on this topic below or contact our Customer Services Team.
Income taxes often represent 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 transactions and events reported in the financial statements. The amount of taxes currently payable or recoverable depends 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.
The training also addresses how accounting for taxes is affected by coronavirus in areas such as meeting the criteria for recognition of deferred tax assets.
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 and IFRIC 23 Uncertainty over Income Tax Treatments.
The course will update delegates on the limited amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction. These limit the scope of the initial recognition exemptions in IAS 12 and are effective for annual periods beginning on or after 1 January 2023. The course will also explain proposals to amend IAS 12 to reflect Pillar Two Model Rules.
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 recognized, 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?