Intermediate Accounting Income Taxes参考.ppt

Deferred Income Tax Overview The primary goal of financial accounting is to provide useful information to management, stockholders, creditors, and others properly interested. The primary goal of the income tax system is the equitable collection of revenue. Deferred Income Tax Overview Deferred Income Tax Overview Example 1: Simple Deferred Tax Liability In 2011, Ibanez Company earned revenues of $30,000. Ibanez has no expenses other than income taxes. In this case, Ibanez is taxed on cash received. The company received $10,000 in 2011 and $20,000 in 2012. The income tax rate is 40% and it is expected to remain the same into the foreseeable future. Example 1: Simple Deferred Tax Liability Example 1: Simple Deferred Tax Liability Example 2: Simple Deferred Tax Liability In 2011, Gupta Company generated service revenues totaling $60,000, all taxable in 2011. No warranty claims were made in 2011, but Gupta estimates that in 2012 warranty costs of $10,000 will be incurred for claims related to 2011 service revenues. Assume a 40% tax rate. Example 2: Simple Deferred Tax Liability Example 2: Simple Deferred Tax Liability Permanent and Temporary Differences Permanent differences are caused by specific provisions of the tax law that exempt certain types of revenues from taxation and prohibit the deduction of certain types of expenses. Permanent and Temporary Differences Temporary differences are caused by differences between pretax financial income and taxable income that arises from business events that are recognized for both financial reporting and tax purposes but in different time periods. Illustration of Permanent and Temporary Differences For the year ended December 31, 2011, Monroe Corporation reported net income before taxes of $420,000. This amount includes $20,000 of nontaxable revenues and $5,000 of nondeductible expenses. The depreciation method used for tax purposes allowed a deduction that exceeded the book approach by $30,000. Illustration of Permanent an