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. They are known as book-tax differences and are classified as either temporary or permanent.
This course covers temporary differences, including:
- how to identify and account for temporary differences
- income/expense book-tax difference relating to financial income that will be recognized in the future is known as a deductible temporary difference creating a deferred tax asset.
- income/expense book-tax difference relating to taxable income that will be recognized in the future is known as a taxable temporary difference creating a deferred tax liability.
- What to do when these items reverse in a future period.
- the balance sheet presentation of deferred tax assets and deferred tax liabilities arising from these transactions
- how to prepare the journal entry to record the income tax expense (also called the income tax provision) including the deferred tax benefit/liability due to book-tax differences.
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 temporary difference is and recognize how it is computed.
- Identify what a deferred tax liability is and recognize how to compute the tax accrual for a temporary negative difference.
- Identify what a deferred tax asset is and recognize how to compute the tax accrual for a temporary positive difference.
- Recognize the proper financial statement presentation of temporary differences.
- Discover what is recorded in the Valuation Allowance Account and when it is used.
- Discover the proper financial statement presentation of temporary differences in the Tax Accrual footnote.
- Identify what an uncertain tax position is and recognize its effect on the tax accrual.
Last updated/reviewed: November 24, 2019
32 Reviews (159 ratings)Reviews
Ara Toroyan
(Director - Financial Planning & Proc.. at NCCI Holdings, Inc.)
This would be a better course if there wasn't seemingly duplication of the recorded material. It appears that sections 3 and 4 both have their content repeated, making them unnecessarily twice as long.
The presenter was good and the topic is not an easy one to convey.
<div class="italic orange margin-top-20">We have edited the videos in sections 3 and 4. Thank you for letting us know about the problem! — Proformative Editor</div>
Anonymous
()
The instructor is pretty effective with the book/tax differences. The examples used in the PowerPoint slides were helpful in understanding how the book/tax differences come about.
Anonymous
(Corporate Controller)
Comprehensive review. Would be nice to have an end to end tax provision course rather than breaking it up into pieces. Also, not enough on reconciling the effective tax rate.
Anonymous
(Consultant)
The instructor made the learning of basic book-tax difference and UTP much simpler and easier to understand in this course.
Craig Scanlon
(Owner at BST)
Good refresher and pretty good examples. Not sure I was clear on a few of the questions in review and final exams
Inna Shmukler
(Controller at Fornetix LLC)
Very informative and well delivered. A great course to get a better understanding of some compicated tax topics.
Don Myers
(Finance & Operations Executive at -)
Cherie provides great examples that allow you to easily digest the tax principles beyond just theory.
Bryan Baker
(- at DOJ)
A good overview on the handling of Financial and taxable income, and how they should be reported.
Peter Morris
(Consultant at Treasury)
Good coverage of relevant tax topics. It would have been beneficial to have more case studies.
Anonymous
(Tax Accountant)
This was a great refresher course on deferred tax assets and deferred tax liabilities.
Marizabeth Arocha
(Supervisor, Financial Reporting and Acco.. at Publicis Groupe)
Excellent overview about temporary differences, very useful examples and exercises
Brian Krauss
( at Brian H. Krauss, CPA, P.C.)
Some slides duplicated. Course should be edited to exclude duplicate slides.
Anonymous
(Tax Consultant)
A good course for those with little experience in accounting for income taxes.
Stephanie Pan
(Tax Associate at NFP)
Good examples to help understand the concepts and clear slides and materials.
Anonymous
(-)
Very good distillation of a somewhat complex area. Easy to follow. Thanks!
Anonymous
(Tax Staff)
Easy to follow course with good examples to help you retain the information.
Pamela LaPlaca, CPA
(Controller at EG USA)
VERY thorough review. I will be taking more classes from Cherie.
Anonymous
(Associate)
I found this course to be very informative. Great examples.
Anonymous
(CPA)
Good review and case examples, helps to refresh material.
Anonymous
(Manager)
A small refresher for internal auditors is always welcome
Anonymous
(CFO)
It was a good refresher course for a non-tax accountant
Anonymous
(Senior Accountant)
The examples were simple and understandable. Thanks!
Anonymous
(Financial Analyst)
Great introduction to book tax differences!
Anonymous
(-)
Very informative and easy to follow.
Anonymous
(NA)
Very informative
Anonymous
(Chief Financial Officer)
Good review.
Matt Osmundsen
(Director of Financial Planning at Baldwin Technology Company, Inc.)
Great course!
Anonymous
(Fiscal Officer)
valued course
Anonymous
(Director - Transaction Services)
Good course.
Anonymous
(Not Provided)
good class.
Patrenia McAbee
(Owner at McAbee Consulting)
Good
Scott Saville, CPA
(Global Technical Accounting Policy at Cisco Systems)
!
Prerequisites
Course Complexity: Intermediate
No advanced preparation or prerequisites are required for this course. Note: a subsequent course covers permanent differences and should be taken after completing this course.
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 .