Topics Question 16-1 Income tax expense is comprised of both the current and the deferred tax consequences of events and transactions already recognized. Specifically, it includes (a) the income tax that is payable currently and (b) the change in the deferred tax liability (or asset). Apparently, in the situation described, temporary differences required a $4.4 million increase in the deferred tax liability, a $4.4 million decrease in the deferred tax asset, or some combination of the two
Words: 16243 - Pages: 65
IFRS Income Tax Accounting IFRS for SMEs: A less taxing standard? On July 9, 2009, the IASB published the International Financial Reporting Standard for Small and Medium-sized Entities (“IFRS for SMEs” or “the standard”), a self-contained standard of about 230 pages designed to ease the burden of IFRS reporting for entities that do not have public accountability. Globally, more jurisdictions may be encouraged to replace existing local GAAP with IFRS for SMEs. As a result, it holds important
Words: 2378 - Pages: 10
ChapterÊ12ÊSolutions Income Tax Reporting Exercises Exercises 1. Determining current taxes payable (AICPA adapted) The amount of current income tax liability that would be reported on Ross Co.’s December 31, 1998, balance sheet is determined as follows: Net income before depreciation expense and income taxes $100,000 Depreciation expense (for tax purposes) (20,000) Taxable income 80,000 Tax rate 30% Current income tax liability $24,000 2. Determining deferred tax liability (AICPA
Words: 13881 - Pages: 56
Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues Leader’s Guide Leader’s Guide Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues Jan Taylor Morris, PhD, CPA Time: 3 hour unit of study Module Objectives 1. Help students understand the importance of exercising high quality professional judgment; 2. Introduce students to the KPMG Professional Judgment Framework; 3. Provide students with an opportunity to apply the framework; and 4. Provide students with the
Words: 15534 - Pages: 63
Taxable amounts. T 4. Deferred tax liability. F 5. Deductible amounts. T 6. Deferred tax asset. F 7. Need for valuation allowance account. T 8. Positive and negative evidence. F 9. Computation of income tax expense. T 10. Taxable temporary differences. F 11. Taxable temporary difference examples. T 12. Permanent differences. T 13. Applying tax rates to temporary differences. F 14. Change in tax rates. F 15. Accounting for a loss carryback. T 16. Tax effect of a loss carryforward
Words: 5475 - Pages: 22
Chapter 16 Accounting for Income Taxes AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments, and faculty may approach assessment and its documentation differently, one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor, we have labeled each question, exercise, and problem in Intermediate Accounting, 7e, with the following AACSB learning
Words: 17693 - Pages: 71
– Difference between the tax basis of an asset or liability and its reported amount in the financial statements * Taxable amounts increase taxable income in future years * Deductible amounts decrease taxable income in future years * A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year * Deferred tax expense is the increase in the deferred tax liability balance from the
Words: 596 - Pages: 3
|Modified |2 | |3 |LO 1 |Entities included in consolidated tax |Modified |3 | | | | return | | | |4 |LO 1 |Tax return tax expense versus book tax |Unchanged |4 | | | | expense
Words: 5613 - Pages: 23
Income Taxes. The Company anticipates its effective tax rate will be approximately 37%, which reflects a more normalized rate after the release of the tax valuation allowance in 2015 and is based on the Company’s relative mix of domestic, foreign and state income tax expense. 所得税。该公司预计其有效税率将约为37%，这反映了一个更规范的税率释放后，在2015的税收估值补贴，是根据该公司的相对混合国内，外国和国家所得税费用。 The Company’s capital expenditures were $2.7 billion and $2.0 billion in 2015 and 2014, respectively. The Company’s capital expenditures for both
Words: 1958 - Pages: 8
increased 33% to 3.5 billion on a GAAP basis. Dell attributes this mainly to increases in operating income and a lower effective tax rate. Dell’s measurement and estimation practices for the following accounting elements: I. Bad Debt Expense II. Revenue Recognition III. Intangible Assets IV. Tax Expense I. Bad Debt Expense Dell uses the Allowance method to handle uncollectible accounts receivable in regards to its bad debt expense. This accounting method has been known to
Words: 2329 - Pages: 10
