Deferred Tax

This course will enable you to

• Recognise deferred tax correctly in the financial statements
• Apply the correct tax rates for deferred tax
• Understand the various accounting treatments for deferred tax
• Make the appropriate disclosures in relation to deferred tax assets

About the course

Many accountants don't feel the need to recognise deferred tax in the financial statements as it is more of an accounting concept, rather than a tax that is paid. However, deferred tax should be viewed as an accruals concept, where a timing difference occurs because a transition arises in one period but can be reversed in another. You need to pay careful attention to deferred tax, to the tax rates applied, and to the correct material disclosures relating to any deferred tax assets or liabilities.

This course will help you understand why deferred tax should be recognised, the importance of timing differences, which tax rates should be used for its calculation, and the fundamental rules for recognising deferred tax assets.