Deferred tax accounting can often feel like one of the more complex aspects of financial reporting, but it doesn’t have to be. This webinar is designed to provide finance professionals with a clear and practical understanding of FRS 12 - Income Taxes, enabling them to navigate deferred tax issues with confidence and accuracy.
Participants will gain actionable insights into key concepts such as temporary differences, current and deferred tax liabilities, and tax base calculations. Through practical examples and case studies, you will learn how to identify, calculate, and report deferred tax with precision—whether it relates to fair value adjustments, consolidation adjustments, or tax losses.
This webinar will also explore the real-world implications of deferred tax on consolidated financial statements, addressing common scenarios such as investments in subsidiaries, associates, and joint ventures. Practical tips on measurement, disclosure requirements, and avoiding pitfalls will help you strengthen your financial reporting skills.
Whether you are preparing group accounts, managing corporate tax compliance, or seeking clarity on complex tax scenarios, this webinar aims to deliver the knowledge and tools you need in order to handle deferred tax effectively.
A Highlight of Key Areas:
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