西方财务会计 原版课件19hqmk.pptx

《西方财务会计 原版课件19hqmk.pptx》由会员分享，可在线阅读，更多相关《西方财务会计 原版课件19hqmk.pptx（74页珍藏版）》请在淘文阁 - 分享文档赚钱的网站上搜索。

1、Chapter 19-1Chapter 19-2C H A P T E R 19ACCOUNTING FOR INCOME TAXESIntermediate Accounting13th EditionKieso,Weygandt,and Warfield Chapter 19-31.1.Identify differences between pretax financial income and taxable income.Identify differences between pretax financial income and taxable income.2.2.Descri

2、be a temporary difference that results in future taxable amounts.Describe a temporary difference that results in future taxable amounts.3.3.Describe a temporary difference that results in future deductible amounts.Describe a temporary difference that results in future deductible amounts.4.4.Explain

3、the purpose of a deferred tax asset valuation allowance.Explain the purpose of a deferred tax asset valuation allowance.5.5.Describe the presentation of income tax expense in the income statement.Describe the presentation of income tax expense in the income statement.6.6.Describe various temporary a

4、nd permanent differences.Describe various temporary and permanent differences.7.7.Explain the effect of various tax rates and tax rate changes on deferred Explain the effect of various tax rates and tax rate changes on deferred income taxes.income taxes.8.8.Apply accounting procedures for a loss car

5、ryback and a loss carryforward.Apply accounting procedures for a loss carryback and a loss carryforward.9.9.Describe the presentation of deferred income taxes in financial statements.Describe the presentation of deferred income taxes in financial statements.10.10.Indicate the basic principles of the

6、 asset-liability method.Indicate the basic principles of the asset-liability method.Learning ObjectivesChapter 19-4Fundamentals of Fundamentals of Accounting for Accounting for Income TaxesIncome TaxesFuture taxable Future taxable amounts and amounts and deferred taxesdeferred taxesFuture deductible

7、 Future deductible amounts and amounts and deferred taxesdeferred taxesIncome Income statement statement presentationpresentationSpecific Specific differencesdifferencesRate Rate considerationsconsiderationsAccounting for Accounting for Net Operating Net Operating LossesLossesFinancial Financial Sta

8、tement Statement PresentationPresentationReview of Asset-Review of Asset-Liability MethodLiability MethodLoss carrybackLoss carrybackLoss Loss carryforwardcarryforwardLoss carryback Loss carryback exampleexampleLoss Loss carryforward carryforward exampleexampleBalance sheetBalance sheetIncome Income

9、 statementstatementUncertain tax Uncertain tax positionspositionsAccounting for Income TaxesChapter 19-5Corporations must file income tax returns following the guidelines developed by the Internal Revenue Service(IRS),thus they:LO 1 Identify differences between pretax financial income and taxable in

10、come.Fundamentals of Accounting for Income Taxescalculate taxes payable based upon IRS code,calculate income tax expense based upon GAAP.Amount reported as tax expense will often differ from the amount of taxes payable to the IRS.Chapter 19-6Tax CodeExchangesInvestors and CreditorsFinancial Statemen

11、tsPretax Financial IncomeGAAPIncome Tax ExpenseTaxable IncomeIncome Tax PayableTax Returnvs.Fundamentals of Accounting for Income TaxesLO 1 Identify differences between pretax financial income and taxable income.Illustration 19-1Chapter 19-7Illustration:KRC,Inc.reported revenues of$130,000 and expen

12、ses of$60,000 in each of its first three years of operations.For tax purposes,KRC reported the same expenses to the IRS in each of the years.KRC reported taxable revenues of$100,000 in 2010,$150,000 in 2011,and$140,000 in 2012.What is the effect on the accounts of reporting different amounts of reve

13、nue for GAAP versus tax?LO 1 Identify differences between pretax financial income and taxable income.Fundamentals of Accounting for Income TaxesChapter 19-8RevenuesExpensesPretax financial incomeIncome tax expense(40%)$130,00060,000$70,000$28,000$130,000201160,000$70,000$28,000$130,000201260,000$70,

14、000$28,000$390,000Total180,000$210,000$84,000GAAP ReportingGAAP ReportingRevenuesExpensesPretax financial incomeIncome tax payable(40%)$100,000201060,000$40,000$16,000$150,000201160,000$90,000$36,000$140,000201260,000$80,000$32,000$390,000Total180,000$210,000$84,000Tax Reporting2010LO 1 Identify dif

15、ferences between pretax financial income and taxable income.Book vs.Tax DifferenceIllustration 19-2Illustration 19-3Chapter 19-9Income tax expense(GAAP)Income tax payable(IRS)Difference$28,00016,000$12,000$28,000201136,000$(8,000)$28,000201232,000$(4,000)$84,000Total84,000$0ComparisonComparison2010A

16、re the differences accounted for in the financial statements?YearReporting Requirement201020112012Deferred tax liability account increased to$12,000Deferred tax liability account reduced by$8,000Deferred tax liability account reduced by$4,000YesYesLO 1 Identify differences between pretax financial i

17、ncome and taxable income.Book vs.Tax DifferenceIllustration 19-4Chapter 19-10Balance SheetAssets:Liabilities:Equity:Income tax expense Income tax expense 28,00028,000Income StatementRevenues:Expenses:Net income(loss)20102010Deferred taxes Deferred taxes 12,00012,000Where does the“deferred tax liabil

18、ity”get reported in the financial statements?Income tax payableIncome tax payable16,00016,000LO 1 Identify differences between pretax financial income and taxable income.Financial Reporting for 2010Chapter 19-11A A Temporary DifferenceTemporary Difference is the difference between the tax is the dif

19、ference between the tax basis of an asset or liability and its reported(carrying or basis of an asset or liability and its reported(carrying or book)amount in the financial statements that will result in book)amount in the financial statements that will result in taxable taxable amounts or amounts o

20、r deductibledeductible amounts in future years.amounts in future years.Future Taxable AmountsFuture Taxable AmountsFuture Deductible AmountsFuture Deductible AmountsDeferred Tax LiabilityDeferred Tax Liability represents the increase in taxes represents the increase in taxes payable in future years

21、as a result payable in future years as a result of taxable temporary differences of taxable temporary differences existing at the end of the current existing at the end of the current year.year.Deferred Tax AssetDeferred Tax Asset represents represents the increase in taxes refundable the increase i

22、n taxes refundable(or saved)in future years as a(or saved)in future years as a result of deductible temporary result of deductible temporary differences existing at the end of differences existing at the end of the current year.the current year.Illustration 19-22Illustration 19-22 Examples of Tempor

23、ary DifferencesExamples of Temporary DifferencesLO 2 Describe a temporary difference that results in future taxable amounts.Temporary DifferencesChapter 19-12LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesIllustration:In KRCs situ

24、ation,the only difference between the book basis and tax basis of the assets and liabilities relates to accounts receivable that arose from revenue recognized for book purposes.KRC reports accounts receivable at$30,000 in the December 31,2010,GAAP-basis balance sheet.However,the receivables have a z

25、ero tax basis.Illustration 19-5Chapter 19-13LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesKRC assumes that it will collect the accounts receivable and report the$30,000 collection as taxable revenues in future tax returns.KRC doe

26、s this by recording a deferred tax liability.Illustration 19-6Illustration:Reversal of Temporary Difference,KRC Inc.Chapter 19-14LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesA deferred tax liability represents the increase in ta

27、xes payable in future years as a result of taxable temporary differences existing at the end of the current year.Deferred Tax LiabilityIncome tax expense(GAAP)Income tax payable(IRS)Difference$28,00016,000$12,000$28,000201136,000$(8,000)$28,000201232,000$(4,000)$84,000Total84,000$02010Illustration 1

28、9-4Chapter 19-15LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesIllustration:Because it is the first year of operations for KRC,there is no deferred tax liability at the beginning of the year.KRC computes the income tax expense for

29、 2010 as follows:Deferred Tax LiabilityIllustration 19-9Chapter 19-16LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesIllustration:KRC makes the following entry at the end of 2010 to record income taxes.Deferred Tax LiabilityIncome

30、Tax Expense 28,000Income Tax Payable 16,000Deferred Tax Liability 12,000Chapter 19-17LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesIllustration:Computation of Income Tax Expense for 2011.Deferred Tax LiabilityIllustration 19-10Ch

31、apter 19-18LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesIllustration:KRC makes the following entry at the end of 2011 to record income taxes.Deferred Tax LiabilityIncome Tax Expense 28,000Deferred Tax Liability 8,000Income Tax P

32、ayable 36,000Chapter 19-19LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesIllustration:The entry to record income taxes at the end of 2012 reduces the Deferred Tax Liability by$4,000.The Deferred Tax Liability account appears as fo

33、llows at the end of 2012.Deferred Tax LiabilityIllustration 19-11Chapter 19-20E19-1:E19-1:Starfleet Corporation has one temporary difference Starfleet Corporation has one temporary difference at the end of 2010 that will reverse and cause taxable at the end of 2010 that will reverse and cause taxabl

34、e amounts of$55,000 in 2011,$60,000 in 2012,and$75,000 amounts of$55,000 in 2011,$60,000 in 2012,and$75,000 in 2013.Starfleets pretax financial income for 2010 is in 2013.Starfleets pretax financial income for 2010 is$400,000,and the tax rate is 30%for all years.There are$400,000,and the tax rate is

35、 30%for all years.There are no deferred taxes at the beginning of 2010.no deferred taxes at the beginning of 2010.InstructionsInstructionsa)a)Compute taxable income and income taxes payable for Compute taxable income and income taxes payable for 2010.2010.b)b)Prepare the journal entry to record inco

36、me tax expense,Prepare the journal entry to record income tax expense,deferred income taxes,and income taxes payable for 2010.deferred income taxes,and income taxes payable for 2010.LO 2 Describe a temporary difference that results in future taxable amounts.Future Taxable Amounts and Deferred TaxesC

37、hapter 19-21LO 2 Describe a temporary difference that results in future taxable amounts.a.a.a.a.Future Taxable Amounts and Deferred TaxesChapter 19-22Future Deductible Amounts and Deferred TaxesFuture Deductible Amounts and Deferred TaxesIllustration:During 2010,Cunningham Inc.estimated its warranty

38、 costs related to the sale of microwave ovens to be$500,000,paid evenly over the next two years.For book purposes,in 2010 Cunningham reported warranty expense and a related estimated liability for warranties of$500,000 in its financial statements.For tax purposes,the warranty tax deduction is not al

39、lowed until paid.Illustration 19-12LO 3 Describe a temporary difference that results in future deductible amounts.Chapter 19-23When Cunningham pays the warranty liability,it reports an expense(deductible amount)for tax purposes.Cunningham reports this future tax benefit in the December 31,2010,balan

40、ce sheet as a deferred tax asset.Illustration 19-13Illustration:Reversal of Temporary Difference,Cunningham Inc.LO 3 Describe a temporary difference that results in future deductible amounts.Future Deductible Amounts and Deferred TaxesFuture Deductible Amounts and Deferred TaxesChapter 19-24A deferr

41、ed tax asset represents the increase in taxes refundable(or saved)in future years as a result of deductible temporary differences existing at the end of the current year.Deferred Tax AssetLO 3 Describe a temporary difference that results in future deductible amounts.Future Deductible Amounts and Def

42、erred TaxesFuture Deductible Amounts and Deferred TaxesChapter 19-25Illustration:Hunt Co.accrues a loss and a related liability of$50,000 in 2010 for financial reporting purposes because of pending litigation.Hunt cannot deduct this amount for tax purposes until the period it pays the liability,expe

43、cted in 2011.Deferred Tax AssetLO 3 Describe a temporary difference that results in future deductible amounts.Illustration 19-14Future Deductible Amounts and Deferred TaxesFuture Deductible Amounts and Deferred TaxesChapter 19-26Illustration:Assuming that 2010 is Hunts first year of operations,and i

44、ncome tax payable is$100,000,Hunt computes its income tax expense as follows.Deferred Tax AssetLO 3 Describe a temporary difference that results in future deductible amounts.Illustration 19-16Future Deductible Amounts and Deferred TaxesFuture Deductible Amounts and Deferred TaxesChapter 19-27Illustr

45、ation:Hunt makes the following entry at the end of 2010 to record income taxes.Deferred Tax AssetIncome Tax Expense 80,000Deferred Tax Asset20,000Income Tax Payable 100,000Future Deductible Amounts and Deferred TaxesFuture Deductible Amounts and Deferred TaxesLO 3 Describe a temporary difference tha

46、t results in future deductible amounts.Chapter 19-28Illustration:Computation of Income Tax Expense for 2011.Deferred Tax AssetIllustration 19-17Future Deductible Amounts and Deferred TaxesFuture Deductible Amounts and Deferred TaxesLO 3 Describe a temporary difference that results in future deductib

47、le amounts.Chapter 19-29Illustration:Hunt makes the following entry at the end of 2011 to record income taxes.Deferred Tax AssetIncome Tax Expense 160,000Deferred Tax Asset20,000Income Tax Payable 140,000Future Deductible Amounts and Deferred TaxesFuture Deductible Amounts and Deferred TaxesLO 3 Des

48、cribe a temporary difference that results in future deductible amounts.Chapter 19-30Illustration:The entry to record income taxes at the end of 2011 reduces the Deferred Tax Asset by$20,000.Illustration 19-18Deferred Tax AssetFuture Deductible Amounts and Deferred TaxesFuture Deductible Amounts and

49、Deferred TaxesLO 3 Describe a temporary difference that results in future deductible amounts.Chapter 19-31Illustration:Illustration:Columbia Corporation has one temporary Columbia Corporation has one temporary difference at the end of 2010 that will reverse and cause difference at the end of 2010 th

50、at will reverse and cause deductible amounts of$50,000 in 2011,$65,000 in 2012,and deductible amounts of$50,000 in 2011,$65,000 in 2012,and$40,000 in 2013.Columbias pretax financial income for 2010$40,000 in 2013.Columbias pretax financial income for 2010 is$200,000 and the tax rate is 34%for all ye