Free Deferred Tax course

Chapters 1 to 3 in a single PDF, with a worksheet and cheat sheet.

• 0.-

  Introduction

  How this free course is structured, who it is for and what you work through in the four chapters.

• 1.-

  Temporary and permanent differences

  Why only a difference that reverses to zero gives rise to deferred tax, and how to identify it using the balance sheet approach.

• 2.-

  Deferred tax assets and liabilities

  Deriving the direction of a deferred tax position from its nature and carrying amounts, using the quadrant and the cash question as a check.

• 3.-

  Calculating deferred tax

  The differences matrix by balance sheet item, the applicable tax rate and the movement schedule from opening to closing balance.

• 4.-

  Journal entries for deferred tax

  Splitting the tax charge into a current and a deferred part, the entries for a deferred tax asset and a deferred tax liability, and the reconciliation with the tax return.

• 5.-

  The company's tax position

  Current and deferred tax side by side on the balance sheet, and the risks that incorrect treatment brings for equity, financing and the tax return.

• 6.-

  Sources of deferred tax

  Depreciation differences on fixed assets, the reinvestment reserve, provisions with a differing tax treatment over time and untaxed increases in value.

• 7.-

  Deferred tax within the fiscal unity

  Allocating the tax charge to the subsidiaries, deferred tax in the company-only financial statements and what happens when the fiscal unity is terminated.

• 8.-

  Deferred tax on revaluation

  Measurement at current value, the revaluation reserve, release on depreciation or sale, and revaluation on acquisitions.

• 9.-

  Tax losses available for offset

  Carrying losses forward, calculating the deferred tax asset for loss relief and the restrictions arising from a change in ownership.

• 10.-

  Treatment under RJ 272

  RJ 272 as the framework for taxes on profit, the 'recognise unless' main rule, the overlap with RJ 252 and small legal entities under RJk.

• 11.-

  IAS 12 under IFRS

  IAS 12 in outline, the initial recognition exemption, the comparison with RJ 272 and the disclosure requirements under IFRS.

• 12.-

  Measurement of deferred tax

  Nominal value versus present value, reversal of an earlier write-down and recalculation following a change in tax rate.

• 13.-

  Presentation in the financial statements

  Classification on the balance sheet, offsetting deferred tax positions, the movement schedule in the notes and the tax rate reconciliation.

• 14.-

  Pitfalls in audit practice

  The errors auditors encounter most often, file documentation on deferred tax and explaining it to the client or the board.