中财英文课件：ch19 Accounting for Income Taxes.pptx

PREVIEW OF CHAPTER19Intermediate AccountingIFRS 2nd EditionKieso, Weygandt, and Warfield 19Accounting for Income TaxesLEARNING OBJECTIVESAfter studying 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 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.ACCOUNTING FOR INCOME TAXESCorporations must file income tax returns following the guidelines developed by the appropriate tax authority.Because IFRS and tax regulations differ in a number of ways, frequently the amounts reported for the following will differ: Income tax expense (IFRS)Income taxes payable (Tax Authority)LO 1ACCOUNTING FOR INCOME TAXESFinancial StatementsTax Returnvs.?Pretax Financial IncomeTaxable IncomeIFRSTax Code?Income Tax ExpenseIncome Taxes PayableLO 1ACCOUNTING FOR INCOME TAXESIllustration: Chelsea, Inc. reported revenues of $130,000 and expenses of $60,000 in each of its first three years of operations. For tax purposes, Chelsea reported the same expenses to the IRS in each of the years. Chelsea reported taxable revenues of $100,000 in 2015, $150,000 in 2016, and $140,000 in 2017. What is the effect on the accounts of reporting different amounts of revenue for IFRS versus tax?LO 1Book vs. Tax DifferencesILLUSTRATION 19-2Financial ReportingIncomeIFRS Reporting201520162017TotalRevenues$130,000$130,000$130,000$390,000Expenses60,00060,00060,000180,000Pretax financial income$70,000$70,000$70,0