Income Tax Analysis: Exploring In-Depth Concepts

Overview

Financial statements prepared for stockholders and external users follow Generally Accepted Accounting Principles (GAAP), while tax returns adhere to the Internal Revenue Code (IRC). These frameworks differ in recognizing profitability, influencing reported income significantly. Companies often aim to minimize taxable income within legal bounds, while maintaining compliance with both financial reporting and tax regulations.

Highlights

The major topics that will be covered in this course include:

• Introduction to GAAP and IRC Frameworks
• Key Differences Between Financial Reporting and Tax Reporting
• Understanding Timing Differences
• Recognition of Revenue and Expenses Under GAAP vs. IRC
• Discussion of Deferred Tax Assets
• Impact of Deferred Tax Liabilities
• Permanent vs. Temporary Differences
• Reconciliation of Book Income to Taxable Income

Prerequisites

None

Designed For

Accounting professionals

Objectives

After attending this presentation, you will be able to...

• Recognize variations in income recognition.
• Recognize deductible expenses between GAAP and IRC affect reported profitability and tax liabilities.
• Compute deferred tax assets and liabilities, learning their impact on financial statements and future tax obligations.

Preparation

None

Notice

This is an OnDemand course offered by a third-party vendor. To access the course after purchase, go to My NESCPA and then My CPE and click on My OnDemand. Individual courses are available 90 days from the date of purchase.