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Cherie Hennig, Professor
This former IRS revenue agent is now an author and Professor, teaching tax courses at the University of North Carolina, Wilmington, Florida International, Colorado State, the University of South Florida, and Virginia Tech
This instructor has 19 courses »To Access This Course:
Although a majority of income and deduction items encountered by a business enterprise are treated identically for financial reporting and tax purposes, there are numerous items that are treated differently. These are known as book-tax differences and are classified as either temporary or permanent.
This webinar covers permanent differences, including:
- how to identify and account for permanent differences
- Permanent differences are book items that never affect the taxable income computation, or vice versa.
- Permanent differences result in an increase (decrease) in the corporation’s effective tax rate (ETR).
- how to read and understand the financial statement footnote including the computation of the ETR
- how to prepare the journal entry to record the income tax expense (also called the income tax provision) net of the tax saving (cost) of permanent differences
- learn about additional footnote disclosures regarding current and deferred taxes
- a comprehensive example of permanent book-tax differences, including their computation and financial statement presentation is provided to reinforce your knowledge of the tax accrual process
Course Series
This course is included in the following series:
2 CoursesAccounting for Differences in Financial and Taxable Income
- Accounting for Temporary Differences in Financial and Taxable Income After 2017
- Accounting for Permanent Differences Between Financial and Taxable Income After 2017
Learning Objectives
- Identify what a book-tax difference is and how it is computed
- Identify what a permanent difference is and how it is computed
- Identify Tax-exempt income
- Recognize what is included in the Tax Provision
- Identify Nondeductible expenses
- Recognize what is the impact of permanent differences on the financial tax expense
- Recognize what is the effective tax rate and how is it computed.
- Explore the financial statement presentation of the effective tax rate
- Discover additional required footnote disclosures
Last updated/reviewed: May 20, 2022
18 Reviews (100 ratings)Reviews
Anonymous
(Director of SEC Reporting)
This course greatly help me understand how the effective tax rate and the tax provision entries are determined. The walkthrough of sample disclosures and case study reinforced the concepts. Highly recommend this course if you do would like to learn about tax provisions process and related disclosures at a high level.
Peter Morris
(Consultant at Treasury)
Very relevant content. However, the final exam included questions that included ambiguous wording. Even after passing on the 3rd try, I would likel to know which of the five questions was answered incorrectly.
Justin Farr
(Controller at Ncontracts)
I really like all of the courses taught by this instructor. The topics are complicated, but she does a great job explaining the ideas and the examples are useful with real world examples
Craig Scanlon
(Owner at BST)
Good overview with specific examples. Could have skipped GE example as it is more confusing than anything unless there is more explanation of differences.
Anonymous
()
It was great course to refresh my tax accounting! I wish to have more complex courses on temporary and permanent difference.
Yelena Rye-Kirova
(Tax Associate at Grant Thornton, LLP)
I really enjoyed this course. I think I have gained a good and solid knowledge of the permanent differences.
Anonymous
(Accountant II)
What you would expect for a foundation level course. The questions proved to be a nice refresher.
Anonymous
(Finance and Accounting Consultant)
Good course with many examples to assist in gaining an understanding of the material.
Stephanie Pan
(Tax Associate at NFP)
Good examples and overview of the material. The case study helped apply all concepts.
Inna Shmukler
(Controller at Fornetix LLC)
A very informative course. Difficult concepts are well explained and presented.
Kirit Kapadia
( at Kirit KapadiaCPA)
It may need more explanations. good introduction to the tax differences
Pamela LaPlaca, CPA
(Controller at EG USA)
Tough and very thorough. I appreciate how detailed your slides are.
Kelly Woolum
(Assistant Controller at Healthcare Highways)
This is a challenging course. It covers a lot of good material.
Anonymous
(Financial Analyst)
Great introduction to permanent differences!
Anonymous
(-)
Good overview and reminders.
Melvin Balberan
(Senior GL Accountant at Netsuite Philippines Inc.)
This a great course
Anonymous
(-)
Very informative
Patrenia McAbee
(Owner at McAbee Consulting)
Done
Prerequisites
Course Complexity: Intermediate
A basic understanding of financial accounting, how to prepare an income statement and a balance sheet, and how to prepare an adjusting journal entry.
Completion of the basic course covering temporary differences.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .