Accounting for Income Taxes – A Timely Refresher and Update

This 90-minute webinar covers the following topics:

• The balance sheet approach to accounting for income taxes
• The handling (from creation to write-off) of deferred tax assets and deferred tax liabilities
• Need for a valuation account in certain circumstances
• Specific examples of differences – temporary and permanent
• Special topics such as accounting for net operating losses, multiple tax rates etc.
• AMT

WHY SHOULD YOU ATTEND?

Attendees will take away valuable information such as:

• Knowledge of the balance sheet approach for accounting for income taxes.
• An historical accounting for why the profession changed from an income statement approach to the balance sheet approach.
• A complete understanding of what are deferred tax assets and deferred tax liabilities.
• A grasp of the difference between temporary differences and permanent differences.
• Circumstances that require use of a valuation account.

AREA COVERED

Topic area covered include:

• Accounting for current provision
• Accounting for deferred provision
• Temporary difference and how they “turn around” or reverse
• Permanent difference and how they are ignored for deferred tax purposes
• Net operating losses – carry backs, carry forwards
• Tax rate considerations
• Future rates/revisions of future rates
• Special issues
• Multiple temporary differences
• Multiple tax rates
• AMT
• Intra-period tax allocation

LEARNING OBJECTIVES

Attendees will learn the following:

• The historical problems associated with accounting for income taxes.
• How the balance sheet approach dramatically changed income tax accounting.
• The fundamentals surrounding the accounting for income taxes.
• Future activities and their impact on deferred tax assets and/or liabilities.
• The different handling of temporary differences and permanent differences.
• The creation of deferred tax balance sheet accounts.
• Need for a valuation account when it is more likely than not that the net deferred tax asset will not be realized in full.
• Basic provisions of SFAS 109 (ASC 740-10).

WHO WILL BENEFIT?

• Senior bank management
• Selected directors on the Board
• Controllership personnel
• Audit committee members
• Internal auditors
• External auditors
• Primary regulators
• Risk managers
• Financial statement preparers