ACCA-Wolters Kluwer Joint Event: Accounting for Deferred Tax under FRS 12/SFRS(I) 1-12

Description

This practical workshop will deepen your understanding in accounting for deferred taxation: FRS 12/SFRS(I) 1-12 Income Taxes. As this is one of the more challenging financial reporting standards for accountants and auditors, the trainer will use multiple working examples to illustrate the major provisions and compliance requirements of FRS 12/SFRS(I) 1-12.

Additionally, some recent amendments to the Singapore Income Tax Act that affect accounting for income taxes under FRS 12/SFRS(I) 1-12 will be discussed. Attend this workshop and learn to confidently apply FRS 12/SFRS(I) 1-12 in your financial reporting and avoid compliance risks.

Programme Outline

Introduction

• What is the objective of FRS 12?
• What are income taxes?
• What is the approach of FRS 12?
• Recognition of current tax liabilities and current tax assets

Temporary differences

• Why do we need to calculate deferred taxes?
• What are temporary differences?
• How do I calculate deferred tax?
• Must a deferred tax liability always be recognised?
• What is a tax base?
• Question 1
• Question 2
• An example of how deferred tax liability is calculated
• Question 3
• How does deferred tax affect assets carried at fair value?

Deferred tax in consolidated accounts

• Fair value adjustments
• Additional assets and liabilities that are recognised on consolidation
• Initial recognition exceptions taken by the acquirer
• Consolidation adjustments
• Deferred tax asset arising from unrecognised tax losses of the acquiree
• Deferred tax asset arising from unrecognised tax losses of the acquirer
• Investments in subsidiaries, associates and joint ventures

Deferred tax assets

• What are deferred tax assets?
• When is a deferred tax asset recognised?
• What is the criteria in assessing the probability that taxable profit will be available?

Measurement issues

• What tax rates should one use to measure current and deferred taxes?
• What are the tax consequences of dividends?
• In what situations is tax charged to equity instead of the income statement?
• Question 4 – Deferred tax on ROU Assets and Lease Liabilities
• Comprehensive Question 5

Presentation and disclosure

This workshop qualifies for 7.0 CPE hours in Financial and Sustainability Reporting Standards and Pronouncements (Category 1).

What you will learn

• Acquire a deeper understanding of FRS 12/SFRS(I) 1-12 Income Taxes with the use of practical examples and practice questions
• Learn to account for deferred taxation under FRS 12/SFRS(I) 1-12
• Gain a good grasp of the compliance requirements of FRS 12/SFRS(I) 1-12
• Confidently apply FRS 12/SFRS(I) 1-12 and avoid compliance risks in your financial reporting

Target Audience

• Accountants and Auditors

Expert Speaker

Sardool Singh

Sardool is an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He has been lecturing for the past 20 years, and is a highly sought-after seminar leader in the areas of Financial Reporting Standards, Cash Flow Statements, Analysis of Financial Statements, Consolidation and other technical accounting topics.

Sardool brings a commercial perspective to the understanding of complex Accounting Standards and simplifies the requirements of these Standards to enable the participants to have a clear understanding of the topic.

Sardool is also the Chief Financial Officer of an investment company. Prior to his current appointment, he was the Group Financial Controller of a Singapore listed healthcare company. During his ten years in the healthcare industry, he was responsible for the entire Group financial functions and the IPOs of two subsidiaries on SESDAQ. He had also gained his working experience with KPMG Peat Marwick and a Japanese merchant bank.