Income Taxes: Deferred Tax and Valuation Allowance

Understanding the accounting for income taxes under ASC 740 Income Taxes has many interesting nuances, one of which is the concept of deferred taxes! In this deferred tax CPE-eligible, eLearning course (1.5 CPE), we dive into a five-step methodology that you can use when accounting for deferred taxes in accordance with ASC 740. After discussing each step, we dive into the concept of a valuation allowance, which is needed if it is more likely than not that an entity cannot utilize its deferred taxes assets. This online course concludes with a comprehensive case study so you can apply what you’ve just learned.

Topics covered in this deferred tax CPE course include: 

• Advanced income tax issues
• Identifying temporary differences
• Categorizing temporary differences (future taxable vs. future deductible)
• Determining the appropriate tax rate
• Calculating and recording deferred taxes
• Considering and accounting for valuation allowances on deferred tax assets

This deferred tax CPE course is a must for any financial accountant or auditor looking to understanding deferred taxes and the valuation allowance! It is easy to understand and full of practical examples and insights to help you apply what you learn. It is also included in our income taxes course collection, liked below.

Interested in group discounts for your team? Contact us to learn more. 

 By the end of this course, you should be able to: 

• Identify temporary differences and how they are presented on the balance sheet 
• Recall how the enacted tax rate is applied to calculate deferred taxes 
• Recognize why valuation allowances are important to a deferred tax calculation