Site MapHelpFeedbackAccounting for Income Taxes
Accounting for Income Taxes


In this chapter we explore the financial accounting and reporting standards for the effects of income taxes. The discussion defines and illustrates temporary differences, which are the basis for recognizing deferred tax assets and deferred tax liabilities, as well as non-temporary differences, which have no deferred tax consequences. You will learn how to adjust deferred tax assets and deferred tax liabilities when tax laws or rates change. We also discuss accounting for operating loss carrybacks and carryforwards and intraperiod tax allocation.



Describe the types of temporary differences that cause deferred tax liabilities and determine the amounts needed to record periodic income taxes.

Identify and describe the types of temporary differences that cause deferred tax assets.

Describe when and how a valuation allowance is recorded for deferred tax assets.

Explain why nontemporary differences have no deferred tax consequences.

Explain how a change in tax rates affects the measurement of deferred tax amounts.

Determine income tax amounts when multiple temporary differences exist.

Describe when and how an operating loss carryforward and an operating loss carryback are recognized in the financial statements.

Explain how deferred tax assets and deferred tax liabilities are classified and reported in a classified balance sheet and describe related disclosures.

Explain intraperiod tax allocation.





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