Chapter - Accounting for income taxes. After completing this chapter you should be able to: Identify differences between pretax financial income and taxable income, describe a temporary difference that results in future taxable amounts, describe a temporary difference that results in future deductible amounts, explain the purpose of a deferred tax asset valuation other contents. | Volume 2 C H A P T E R 19 ACCOUNTING FOR INCOME TAXES Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Identify differences between pretax financial income and taxable income. Describe a temporary difference that results in future taxable amounts. Describe a temporary difference that results in future deductible amounts. Explain the non-recognition of a deferred tax asset. Describe the presentation of income tax expense in the income statement. Describe various temporary and permanent differences. Explain the effect of various tax rates and tax rate changes on deferred income taxes. Apply accounting procedures for a loss carryback and a loss carryforward. Describe the presentation of income taxes in financial statements. Indicate the basic principles of the asset-liability method. Learning Objectives Fundamentals of Accounting for Income Taxes Future taxable amounts and deferred taxes Future deductible amounts and deferred taxes Income statement presentation Specific differences Rate considerations Accounting for Net Operating Losses Financial Statement Presentation Review of Asset-Liability Method Loss carryback Loss carryforward Loss carryback example Loss carryforward example Statement of financial position Income statement Tex reconciliation Accounting for Income Taxes Corporations must file income tax returns following the guidelines developed by the appropriate taxing authority, thus they: LO 1 Identify differences between pretax financial income and taxable income. Fundamentals of Accounting for Income Taxes calculate taxes payable based upon tax regulations, calculate income tax expense based upon IFRS. Amount reported as tax expense will often differ from the amount of taxes payable to the taxing authority. Tax Code Exchanges Investors and Creditors Financial Statements Pretax Financial Income IFRS Income Tax Expense Taxable Income Income Tax Payable Tax Return vs. . | Volume 2 C H A P T E R 19 ACCOUNTING FOR INCOME TAXES Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Identify differences between pretax financial income and taxable income. Describe a temporary difference that results in future taxable amounts. Describe a temporary difference that results in future deductible amounts. Explain the non-recognition of a deferred tax asset. Describe the presentation of income tax expense in the income statement. Describe various temporary and permanent differences. Explain the effect of various tax rates and tax rate changes on deferred income taxes. Apply accounting procedures for a loss carryback and a loss carryforward. Describe the presentation of income taxes in financial statements. Indicate the basic principles of the asset-liability method. Learning Objectives Fundamentals of Accounting for Income Taxes Future taxable amounts and deferred taxes Future .
