Course description
IFRS Accounting for Income Taxes - IAS 12 (Virtual Classroom)
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 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?
Upcoming start dates
Suitability - Who should attend?
This training course is especially suitable for:
- Accountants in finance and reporting teams that prepare IFRS financial statements
- Corporate tax professionals
- External and internal auditors
- Financial and credit analysts who review financial statements
Outcome / Qualification etc.
By the end of this course, participants will be able to:
- 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
- Identify and account for uncertain tax positions under IFRIC 23
- Comply with presentation and disclosure requirements
CPE credits are available for all courses.
Training Course Content
This course is designed to cover the key topics:
- General principles
- Scope and objectives
- Definitions – deferred tax, temporary differences, tax base
- Current tax
- Current tax assets and liabilities; recognition and measurement
- Recognition in profit or loss, other comprehensive income or equity
- 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 deductible temporary differences
- Unused tax losses and tax credits and availability of future profits
- Assessment of recoverability
- Measurement
- Enacted and substantively enacted tax rates
- Reflecting different methods of recovery
- 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
- Treatment in consolidated financial statements
- Business combinations
- Purchased goodwill
- Unrecognised tax losses
- Intra-group transactions
- Uncertainty over income tax treatments (IFRIC 23)
- Issues arising on first-time adoption of IFRSs
- Treatment in interim financial reports
- Overview of differences between IFRS and US GAAP (ASC Topic 740)
- General principles
Why choose IASeminars
We've been training for 20 years.
50% of our business comes from returning clients.
We offer instructor-led training in international locations, over Zoom or in house.
Reviews
Average rating 4.8
Really enjoyed participating in the course. The presenter is very engaging and made the subject very lively.
Great course to give you an overview and further knowledge of IAS12 plus the pitfalls. The examples from the financial statements given really illustrated how IAS 12 is applied ...
Expenses
The cost of this training course is £950 + VAT.
In-House Training
In addition to the scheduled dates and locations, IASeminars can also run this course as in-house training, to meet the specific requirements of your team. Contact them here to request a customised training solution for your team.
great quality no need to improve