ADMN 3321H Lecture Notes - Lecture 6: Deferred Tax, Income Statement, Life Insurance
30 Mar 2020
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Document Summary
Pension question requires terminology: complete question 4, could mean there is terminology on final concerning terminology for pensions. Chapter 18 learning objectives explain the difference between accounting and taxable income and calculate both taxable temporary differences explain , calculate and calculate deferred liabilities. Deductible temporary differences explain, calculate and calculate deferred tax asset. Prepare analysis of deferred tax balances and recognize deferred tax expense account for tax loss carryback account for tax loss carryfoward, including note disclosure. Life insurance: will create difference between accounting income and taxable income unchangingly (one and done, non-reversing, for expense purposes, can only claim half (entertainment expense) Has effect of creating deferred assets and liabilities related to income taxes (refer to table) Deferred taxes adjusting for: reversing or timing differences, permanent differences. Can result in a deferred asset or liability. Periodic review of deferred asset account required (same concept as goodwill)
