MFRS 112 Income Tax covers current and deferred tax. This workshop specifically relates to deferred tax.
It seeks to provide its participants with knowledge about the importance of providing for the effects of future taxes in the financial statements, the steps towards determining the components of the workings and thus, computing the deferred tax balance. The workshop will thus cover recognition, measurement, presentation and disclosures as required under the standard.
There will also be coverage of some practical issues, in particular in relation to deferred tax effects and considerations arising from the recent latest standards, such as MFRS 15 and MFRS 16.
Brochure
Module 1: Introduction
- Accounting standards in relation to tax
- Requirements of MFRS 112
- Current tax
- Deferred tax
Module 2: Basic deferred tax knowledge
- Principles of deferred taxation
- Basis of provision – using the Balance Sheet method
- Definitions
- Tax base
- Taxable temporary differences
- Deductible temporary differences
- Exempt temporary differences
- Calculating deferred tax – the basics
- Identifying the appropriate tax rate
- Recognition of deferred tax asset
- Unused tax losses and capital allowances or other forms of tax credits (if any)
- Offsetting of deferred tax assets and liabilities
- Case studies / examples
Module 3: allocating deferred tax charge or credit
- Allocation between:
- Continuing operations within profit or loss
- Discontinued operations within profit or loss
- Other comprehensive income (OCI) or equity
- Goodwill
- Deferred tax allocated to business combinations
- Offsetting of deferred tax assets and liabilities
- Case studies / examples
Module 4: Other matters
- Issues in relation to MFRS 15 and MFRS 16
- IC Interpretation 23 Uncertainty over Income Tax Treatment
- COVID-19 related issues in respect of tax
- Presentation and disclosures