ACCG224 Lecture Notes - Lecture 3: Deferred Tax, Deferred Income, Tax Deduction
19 Jun 2018
School
Department
Course
Professor
1 1
ACCG224 – Semester 1, 2014
Week 3
Accounting for Income Taxes
find more resources at oneclass.com
find more resources at oneclass.com
2 2
Readings (BEFORE the lecture!)
ACCG224 Textbook:
Leo (9e): Chpt. 6 (section 6.10 not needed)
Additional Resources (available on iLearn):
AASB 112
Please note:
The lectures will not strictly follow these slides. It is expected and required
that you know the contents of the readings BEFORE the lecture. Consider
these slides as a summary and guideline for the lectures (and later for your
revision) where we will have more examples and discussions around the
topics.
Also, this week’s slides have blanks within certain examples. It is a good
exercise to try to fill the blanks BEFORE the lecture and compare your
attempts with the solutions discussed in the lecture.
find more resources at oneclass.com
find more resources at oneclass.com
3 3
Learning objectives
1. Identify and understand common temporary and permanent
differences between pre-tax accounting profit and taxable income.
2. Explain and calculate an entity’s current tax liability, based on the
current tax consequences of the entity’s transactions.
3. Explain and calculate an entity’s deferred tax liabilities/assets based
on temporary differences that result in future taxable/deductible
amounts.
4. Explain the purpose of a reporting date review of deferred tax assets.
5. Describe the presentation of income tax expense in the income
statement.
6. Explain the effect of various tax rates and tax rate changes on
deferred income taxes.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The lectures will not strictly follow these slides. It is expected and required that you know the contents of the readings before the lecture. Consider these slides as a summary and guideline for the lectures (and later for your revision) where we will have more examples and discussions around the topics. Also, this week"s slides have blanks within certain examples. It is a good exercise to try to fill the blanks before the lecture and compare your attempts with the solutions discussed in the lecture. Accounting for income taxes is governed by. We need to distinguish between two types of income tax effects: Current income tax consequences (income tax payable = current tax liability) Future income tax consequences (deferred tax assets or liabilities) Both are based on differences between pre-tax accounting profit and taxable income. Determined according to accounting standards and principles; Measured with objective of providing useful information to investors and creditors;
