This critical and timely bank accounting webinar addresses important deferred tax asset and liability issues specifically covered in FASB Statement No. 109 (ASC 740.10) and the recently issued ASU 2018-03. It puts the focus on one-time entries such as large tax effects of repatriation dollars; and the accounting for holding gains or losses on available-for-sale securities included in other comprehensive income (OCI) and stranded in OCI when there is a tax rate change enacted – unless ASU 2018-03 is implemented.
This accounting webinar presentation is timely and should be welcomed by those faced with the need to understand accounting for income taxes. It is especially useful for those closing the books and preparing financial statements for their company’s year end. It will refresh attendees with the accounting for income tax rules and their importance going forward in future years based on the newly enacted 2018 Tax Reform Act implications.
Specific topics include:
- The balance sheet approach when accounting for income taxes
- The handling (from creation to ultimate disposition) of deferred tax assets and deferred tax liabilities
- The need for a valuation account (a “contra” account) in certain circumstances to reduce deferred tax assets to net realizable value (NRV)
- Implications for financial institutions and lenders from 2018 Tax Reform Act
- Specific examples of both temporary and permanent differences
Learning objectives include:
- The historical problems associated with accounting for income taxes.
- How the balance sheet approach dramatically changed income tax accounting.
- The fundamentals surrounding the accounting for income taxes.
- Future activities and their impact on deferred tax assets and/or liabilities.
- The different handling of temporary differences and permanent differences.
- The creation of the balances in the deferred tax asset and deferred tax liability accounts
- The need for a valuation account when it is more likely than not (MLTN) that the net deferred tax asset will not be realized in full.
- Basic provisions of SFAS 109 (ASC 740-10)
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.
1.5 CPE Credits & 1.8 AAP Credits