Accounting for Deferred Taxation under FRS 12 Income Taxes

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Description

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Accounting for income taxes requires proper understanding of current and deferred taxation. For many finance professionals, the concepts underlying current and deferred taxation are not intuitive. Applying these concepts requires a thorough knowledge of the relevant income tax laws as well as the requirements of FRS 12 Income Taxes. The concepts and application of deferred taxation under FRS 12 have always been rather challenging even for the more experienced finance professionals.

Wolters Kluwer presents a one-day workshop to share some insights into the more challenging aspects of accounting for current and deferred taxation under FRS 12. Through a combination of conceptual discussions and illustrative applications, the workshop will address key accounting issues and requirements of current and deferred taxation under FRS 12.

Programme Outline

Examine the Accounting for Income Taxes under FRS 12

• Current vs. deferred tax expense/income
• Current vs. deferred tax liability/asset
• Concepts of permanent and timing differences

Apply the Balance Sheet Liability Approach to Deferred Taxation under FRS 12

• Carrying amount and tax base of an asset and a liability
• Taxable and deductible temporary differences
• Relationship between timing and temporary differences
• Two principles of deferred taxation
• 3-step approach to deferred taxation

Identify the Main Sources of Temporary Differences

Understand and Apply the Accounting for Tax Losses Carry Back and Carry Forward

Discuss the Initial Deferred Taxation Recognition Exemption for Assets and Liabilities

Examine Deferred Taxation on Consolidation in relation to Fair Value Adjustments and Additional Assets and Liabilities Recognized on Initial Acquisition of a Subsidiary

Review the Issues in Measurement, Presentation and Disclosure of Current and Deferred Tax

What you will learn

At the end of this workshop, you will:

• Acquire a good understanding of the concepts of current and deferred taxation and the requirements of FRS 12
• Apply the principles of deferred taxation in the computation of deferred tax in illustrative examples
• Examine financial statements disclosure for deferred taxation

Target Audience

• CEOs, COOs, CFOs
• Tax Managers/Professionals
• Financial Controllers/ Finance Directors/ Managers
• Accountants
• Those who need to understand the concept and techniques of computing deferred taxation

Expert Speaker

Low Kin Yew is an Associate Professor of Accounting (Practice) at the Nanyang Business School of Nanyang Technological University and the School’s Associate Dean (Undergraduate Academic). He has a Bachelor of Accountancy degree (First Class Honours) from the National University of Singapore and a Ph.D. in accounting from the University of Illinois at Urbana-Champaign.

Prior to joining Nanyang Technological University, he worked in the Singapore office and Sydney (Australia) office of a Big 4 accounting firm. Since joining the Nanyang Business School, he has taught accounting and auditing courses at both the undergraduate and graduate (MSc, MBA and EMBA) levels. He has won the Researcher, Teacher of the Year Award of the Division (Accounting), and the Nanyang Excellence Award in Teaching. He is a member of the Chartered Accountants Australia and New Zealand (CAANZ) and Institute of Singapore Chartered Accountants (ISCA). He is currently a member of AGD Advisory Committee on Accounting Standards for Statutory Boards and SAC Learning and Assessment Committee for Singapore CA Qualification Programme. He is a co-author of two accounting textbooks: A Practical Guide to Financial Reporting Standards (Singapore), 7th edition, 2018, Wolters Kluwer, and Intermediate Accounting IFRS Edition, Global edition 2, 2019, McGraw-Hill Education.