西方财务会计 原版课件(6).ppt

,CHAPTER19,ACCOUNTINGFORINCOMETAXES,IntermediateAccounting13thEditionKieso,Weygandt,andWarfield,Identifydifferencesbetweenpretaxfinancialincomeandtaxableincome.Describeatemporarydifferencethatresultsinfuturetaxableamounts.Describeatemporarydifferencethatresultsinfuturedeductibleamounts.Explainthepurposeofadeferredtaxassetvaluationallowance.Describethepresentationofincometaxexpenseintheincomestatement.Describevarioustemporaryandpermanentdifferences.Explaintheeffectofvarioustaxratesandtaxratechangesondeferredincometaxes.Applyaccountingproceduresforalosscarrybackandalosscarryforward.Describethepresentationofdeferredincometaxesinfinancialstatements.Indicatethebasicprinciplesoftheasset-liabilitymethod.,LearningObjectives,FundamentalsofAccountingforIncomeTaxes,FuturetaxableamountsanddeferredtaxesFuturedeductibleamountsanddeferredtaxesIncomestatementpresentationSpecificdifferencesRateconsiderations,AccountingforNetOperatingLosses,FinancialStatementPresentation,ReviewofAsset-LiabilityMethod,LosscarrybackLosscarryforwardLosscarrybackexampleLosscarryforwardexample,BalancesheetIncomestatementUncertaintaxpositions,AccountingforIncomeTaxes,CorporationsmustfileincometaxreturnsfollowingtheguidelinesdevelopedbytheInternalRevenueService(IRS),thusthey:,LO1Identifydifferencesbetweenpretaxfinancialincomeandtaxableincome.,FundamentalsofAccountingforIncomeTaxes,calculatetaxespayablebaseduponIRScode,calculateincometaxexpensebaseduponGAAP.,AmountreportedastaxexpensewilloftendifferfromtheamountoftaxespayabletotheIRS.,TaxCode,Exchanges,InvestorsandCreditors,FinancialStatements,PretaxFinancialIncome,GAAP,IncomeTaxExpense,TaxableIncome,IncomeTaxPayable,TaxReturn,vs.,IRS,FundamentalsofAccountingforIncomeTaxes,LO1Identifydifferencesbetweenpretaxfinancialincomeandtaxableincome.,Illustration19-1,Illustration:KRC,Inc.reportedrevenuesof$130,000andexpensesof$60,000ineachofitsfirstthreeyearsofoperations.Fortaxpurposes,KRCreportedthesameexpensestotheIRSineachoftheyears.KRCreportedtaxablerevenuesof$100,000in2010,$150,000in2011,and$140,000in2012.WhatistheeffectontheaccountsofreportingdifferentamountsofrevenueforGAAPversustax?,LO1Identifydifferencesbetweenpretaxfinancialincomeandtaxableincome.,FundamentalsofAccountingforIncomeTaxes,Revenues,Expenses,Pretaxfinancialincome,Incometaxexpense(40%),$130,000,60,000,$70,000,$28,000,$130,000,2011,60,000,$70,000,$28,000,$130,000,2012,60,000,$70,000,$28,000,$390,000,Total,180,000,$210,000,$84,000,GAAPReporting,Revenues,Expenses,Pretaxfinancialincome,Incometaxpayable(40%),$100,000,2010,60,000,$40,000,$16,000,$150,000,2011,60,000,$90,000,$36,000,$140,000,2012,60,000,$80,000,$32,000,$390,000,Total,180,000,$210,000,$84,000,TaxReporting,2010,LO1Identifydifferencesbetweenpretaxfinancialincomeandtaxableincome.,Bookvs.TaxDifference,Illustration19-2,Illustration19-3,Incometaxexpense(GAAP),Incometaxpayable(IRS),Difference,$28,000,16,000,$12,000,$28,000,2011,36,000,$(8,000),$28,000,2012,32,000,$(4,000),$84,000,Total,84,000,$0,Comparison,2010,Arethedifferencesaccountedforinthefinancialstatements?,Year,ReportingRequirement,2010,2011,2012,Deferredtaxliabilityaccountincreasedto$12,000,Deferredtaxliabilityaccountreducedby$8,000,Deferredtaxliabilityaccountreducedby$4,000,Yes,LO1Identifydifferencesbetweenpretaxfinancialincomeandtaxableincome.,Bookvs.TaxDifference,Illustration19-4,BalanceSheet,Assets:,Liabilities:,Equity:,Incometaxexpense28,000,IncomeStatement,Revenues:,Expenses:,Netincome(loss),2010,2010,Deferredtaxes12,000,Wheredoesthe“deferredtaxliability”getreportedinthefinancialstatements?,Incometaxpayable16,000,LO1Identifydifferencesbetweenpretaxfinancialincomeandtaxableincome.,FinancialReportingfor2010,ATemporaryDifferenceisthedifferencebetweenthetaxbasisofanassetorliabilityanditsreported(carryingorbook)amountinthefinancialstatementsthatwillresultintaxableamountsordeductibleamountsinfutureyears.,FutureTaxableAmounts,FutureDeductibleAmounts,DeferredTaxLiabilityrepresentstheincreaseintaxespayableinfutureyearsasaresultoftaxabletemporarydifferencesexistingattheendofthecurrentyear.,DeferredTaxAssetrepresentstheincreaseintaxesrefundable(orsaved)infutureyearsasaresultofdeductibletemporarydifferencesexistingattheendofthecurrentyear.,Illustration19-22ExamplesofTemporaryDifferences,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,TemporaryDifferences,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,Illustration:InKRCssituation,theonlydifferencebetweenthebookbasisandtaxbasisoftheassetsandliabilitiesrelatestoaccountsreceivablethatarosefromrevenuerecognizedforbookpurposes.KRCreportsaccountsreceivableat$30,000intheDecember31,2010,GAAP-basisbalancesheet.However,thereceivableshaveazerotaxbasis.,Illustration19-5,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,KRCassumesthatitwillcollecttheaccountsreceivableandreportthe$30,000collectionastaxablerevenuesinfuturetaxreturns.KRCdoesthisbyrecordingadeferredtaxliability.,Illustration19-6,Illustration:ReversalofTemporaryDifference,KRCInc.,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,Adeferredtaxliabilityrepresentstheincreaseintaxespayableinfutureyearsasaresultoftaxabletemporarydifferencesexistingattheendofthecurrentyear.,DeferredTaxLiability,Incometaxexpense(GAAP),Incometaxpayable(IRS),Difference,$28,000,16,000,$12,000,$28,000,2011,36,000,$(8,000),$28,000,2012,32,000,$(4,000),$84,000,Total,84,000,$0,2010,Illustration19-4,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,Illustration:BecauseitisthefirstyearofoperationsforKRC,thereisnodeferredtaxliabilityatthebeginningoftheyear.KRCcomputestheincometaxexpensefor2010asfollows:,DeferredTaxLiability,Illustration19-9,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,Illustration:KRCmakesthefollowingentryattheendof2010torecordincometaxes.,DeferredTaxLiability,IncomeTaxExpense28,000IncomeTaxPayable16,000DeferredTaxLiability12,000,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,Illustration:ComputationofIncomeTaxExpensefor2011.,DeferredTaxLiability,Illustration19-10,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,Illustration:KRCmakesthefollowingentryattheendof2011torecordincometaxes.,DeferredTaxLiability,IncomeTaxExpense28,000DeferredTaxLiability8,000IncomeTaxPayable36,000,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,Illustration:Theentrytorecordincometaxesattheendof2012reducestheDeferredTaxLiabilityby$4,000.TheDeferredTaxLiabilityaccountappearsasfollowsattheendof2012.,DeferredTaxLiability,Illustration19-11,E19-1:StarfleetCorporationhasonetemporarydifferenceattheendof2010thatwillreverseandcausetaxableamountsof$55,000in2011,$60,000in2012,and$75,000in2013.Starfleetspretaxfinancialincomefor2010is$400,000,andthetaxrateis30%forallyears.Therearenodeferredtaxesatthebeginningof2010.InstructionsComputetaxableincomeandincometaxespayablefor2010.Preparethejournalentrytorecordincometaxexpense,deferredincometaxes,andincometaxespayablefor2010.,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,FutureTaxableAmountsandDeferredTaxes,LO2Describeatemporarydifferencethatresultsinfuturetaxableamounts.,a.,a.,FutureTaxableAmountsandDeferredTaxes,FutureDeductibleAmountsandDeferredTaxes,Illustration:During2010,CunninghamInc.estimateditswarrantycostsrelatedtothesaleofmicrowaveovenstobe$500,000,paidevenlyoverthenexttwoyears.Forbookpurposes,in2010Cunninghamreportedwarrantyexpenseandarelatedestimatedliabilityforwarrantiesof$500,000initsfinancialstatements.Fortaxpurposes,thewarrantytaxdeductionisnotalloweduntilpaid.,Illustration19-12,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,WhenCunninghampaysthewarrantyliability,itreportsanexpense(deductibleamount)fortaxpurposes.CunninghamreportsthisfuturetaxbenefitintheDecember31,2010,balancesheetasadeferredtaxasset.,Illustration19-13,Illustration:ReversalofTemporaryDifference,CunninghamInc.,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,FutureDeductibleAmountsandDeferredTaxes,Adeferredtaxassetrepresentstheincreaseintaxesrefundable(orsaved)infutureyearsasaresultofdeductibletemporarydifferencesexistingattheendofthecurrentyear.,DeferredTaxAsset,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,FutureDeductibleAmountsandDeferredTaxes,Illustration:HuntCo.accruesalossandarelatedliabilityof$50,000in2010forfinancialreportingpurposesbecauseofpendinglitigation.Huntcannotdeductthisamountfortaxpurposesuntiltheperioditpaystheliability,expectedin2011.,DeferredTaxAsset,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,Illustration19-14,FutureDeductibleAmountsandDeferredTaxes,Illustration:Assumingthat2010isHuntsfirstyearofoperations,andincometaxpayableis$100,000,Huntcomputesitsincometaxexpenseasfollows.,DeferredTaxAsset,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,Illustration19-16,FutureDeductibleAmountsandDeferredTaxes,Illustration:Huntmakesthefollowingentryattheendof2010torecordincometaxes.,DeferredTaxAsset,IncomeTaxExpense80,000DeferredTaxAsset20,000IncomeTaxPayable100,000,FutureDeductibleAmountsandDeferredTaxes,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,Illustration:ComputationofIncomeTaxExpensefor2011.,DeferredTaxAsset,Illustration19-17,FutureDeductibleAmountsandDeferredTaxes,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,Illustration:Huntmakesthefollowingentryattheendof2011torecordincometaxes.,DeferredTaxAsset,IncomeTaxExpense160,000DeferredTaxAsset20,000IncomeTaxPayable140,000,FutureDeductibleAmountsandDeferredTaxes,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,Illustration:Theentrytorecordincometaxesattheendof2011reducestheDeferredTaxAssetby$20,000.,Illustration19-18,DeferredTaxAsset,FutureDeductibleAmountsandDeferredTaxes,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,Illustration:ColumbiaCorporationhasonetemporarydifferenceattheendof2010thatwillreverseandcausedeductibleamountsof$50,000in2011,$65,000in2012,and$40,000in2013.Columbiaspretaxfinancialincomefor2010is$200,000andthetaxrateis34%forallyears.Therearenodeferredtaxesatthebeginningof2010.Columbiaexpectstobeprofitableinthefuture.InstructionsComputetaxableincomeandincometaxespayablefor2010.Preparethejournalentrytorecordincometaxexpense,deferredincometaxes,andincometaxespayablefor2010.,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,FutureDeductibleAmountsandDeferredTaxes,LO3Describeatemporarydifferencethatresultsinfuturedeductibleamounts.,a.,a.,FutureDeductibleAmountsandDeferredTaxes,DeferredTaxAssetValuationAllowance,Acompanyshouldreduceadeferredtaxassetbyavaluationallowanceifitismorelikelythannotthatitwillnotrealizesomeportionorallofthedeferredtaxasset.“Morelikelythannot”meansaleveloflikelihoodofatleastslightlymorethan50percent.,LO4Explainthepurposeofadeferredtaxassetvaluationallowance.,FutureDeductibleAmountsandDeferredTaxes,E19-14:CallawayCorp.hasadeferredtaxassetbalanceof$150,000attheendof2010duetoasinglecumulativetemporarydifferenceof$375,000.Attheendof2011thissametemporarydifferencehasincreasedtoacumulativeamountof$500,000.Taxableincomefor2011is$850,000.Thetaxrateis40%forallyears.Novaluationaccountisinexistenceattheendof2010.InstructionsAssumingthatitismorelikelythannotthat$30,000ofthedeferredtaxassetwillnotberealized,preparethejournalentriesrequiredfor2011.,LO4Explainthepurposeofadeferredtaxassetvaluationallowance.,FutureDeductibleAmountsandDeferredTaxes,LO4Explainthepurposeofadeferredtaxassetvaluationallowance.,FutureDeductibleAmountsandDeferredTaxes,DeferredTaxAssetValuationAllowance,E19-14BalanceSheetPresentation,LO4Explainthepurposeofadeferredtaxassetvaluationallowance.,FutureDeductibleAmountsandDeferredTaxes,Incometaxpayableorrefundable,LO5Describethepresentationofincometaxexpenseintheincomestatement.,IncomeStatementPresentation,Changeindeferredincometax,Incometaxexpenseorbenefit,+-,=,Intheincomestatementorinthenotestothefinancialstatements,acompanyshoulddisclosethesignificantcomponentsofincometaxexpense(currentanddeferred).,FormulatoComputeIncomeTaxExpense,Illustration19-20,LO5Describethepresentationofincometaxexpenseintheincomestatement.,IncomeStatementPresentation,GiventhepreviousinformationrelatedtoKRCInc.,KRCreportsitsincomestatementasfollows.,Illustration19-21,Taxabletemporarydifferences-DeferredtaxliabilityDeductibletemporarydifferences-DeferredtaxAsset,TemporaryDifferences,SpecificDifferences,TextIllustration19-22ExamplesofTemporaryDifferences,LO6Describevarioustemporaryandpermanentdifferences.,Permanentdifferencesarecausedbyitemsthat(1)enterintopretaxfinancialincomebutneverintotaxableincomeor(2)enterintotaxableincomebutneverintopretaxfinancialincome.,Permanentdifferencesaffectonlytheperiodinwhichtheyoccur.Theydonotgiverisetofuturetaxableordeductibleamounts.Therearenodeferredtaxconsequencestoberecognized.,TextIllustration19-24ExamplesofPermanentDifferences,SpecificDifferences,LO6Describevarioustemporaryandpermanentdifferences.,Dothefollowinggenerate:FutureDeductibleAmount=DeferredTaxAssetFutureTaxableAmount=DeferredTaxLiabilityPermanentDifference,1.TheMACRSdepreciationsystemisusedfortaxpurposes,andthestraight-linedepreciationmethodisusedforfinancialreportingpurposes.,FutureTaxableAmount,2.Alandlordcollectssomerentsinadvance.Rentsreceivedaretaxableintheperiodwhentheyarereceived.,FutureDeductibleAmount,3.Expensesareincurredinobtainingtax-exemptincome.,PermanentDifference,4.Costsofguaranteesandwarrantiesareestimatedandaccruedforfinancialreportingpurposes.,FutureDeductibleAmount,SpecificDifferences,LO6Describevarioustemporaryandpermanentdifferences.,E19-6,Dothefollowinggenerate:FutureDeductibleAmount=DeferredTaxAssetFutureTaxableAmount=DeferredTaxLiabilityPermanentDifference,5.Salesofinvestmentsareaccountedforbytheaccrualmethodforfinancialreportingpurposesandtheinstallmentmethodfortaxpurposes.,FutureTaxableAmount,6.Proceedsarereceivedfromalifeinsurancecompanybecauseofthedeathofakeyofficer(thecompanycarriesapolicyonkeyofficers).,FutureDeductibleAmount,7.Estimatedlossesonpendinglawsuitsandclaimsareaccruedforbooks.Theselossesaretaxdeductibleintheperiod(s)whentherelatedliabilitiesaresettled.,APermanentDifference,SpecificDifferences,LO6Describevarioustemporaryandpermanentdifferences.,E19-6,PermanentDifferences,LO6Describevarioustemporaryandpermanentdifferences.,E19-4:HavaciCompanyreportspretaxfinancialincomeof$80,000for2010.Thefollowingitemscausetaxableincometobedifferentthanpretaxfinancialincome.Depreciationonthetaxreturnisgreaterthandepreciationontheincomestatementby$16,000.Rentcollectedonthetaxreturnisgreaterthanrentearnedontheincomestatementby$27,000.Finesforpollutionappearasanexpenseof$11,000ontheincomestatement.Havacistaxrateis30%forallyears,andthecompanyexpectstoreporttaxableincomeinallfutureyears.Therearenodeferredtaxesatthebeginningof2010.,PermanentDifferences,LO6Describevarioustemporaryandpermanentdifferences.,Acompanymustconsiderpresentlyenactedchangesinthetaxratethatbecomeeffectiveforaparticularfutureyear(s)whendeterminingthetaxratetoapplytoexistingtemporarydifferences.RevisionofFutureTaxRatesWhenachangeinthetaxrateisenacted,companiesshouldrecorditseffectontheexistingdeferredincometaxaccountsimmediately.,TaxRateConsiderations,SpecificDifferences,LO7Explaintheeffectofvarioustaxratesandtaxratechangesondeferredincometaxes.,Netoperatingloss(NOL)=tax-deductibleexpensesexceedtaxablerevenues.Thefederaltaxlawspermittaxpayerstousethelossesofoneyeartooffsettheprofitsofotheryears(carrybackandcarryforward).,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,LossCarryback,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,Back2yearsandforward20yearsLossesmustbeappliedtoearliestyearfirst,Illustration19-29,LossCarryforward,MayelecttoforgolosscarrybackandCarryforwardlosses20years,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,Illustration19-30,BE19-12:(Carryback)ConlinCorporationhadthefollowingtaxinformation.,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,In2011Conlinsufferedanetoperatinglossof$480,000,whichitelectedtocarryback.The2011enactedtaxrateis29%.PrepareValissentrytorecordtheeffectofthelosscarryback.,AccountingforNetOperatingLosses,$144,000,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,E19-12:JournalEntryfor2011,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,Incometaxrefundreceivable144,000Benefitduetolosscarryback144,000,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,BE19-13:RodeInc.incurredanetoperatinglossof$500,000in2010.Combinedincomefor2008and2009was$350,000.Thetaxrateforallyearsis40%.Rodeelectsthecarrybackoption.Preparethejournalentriestorecordthebenefitsofthelosscarrybackandthelosscarryforward.,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,E19-13:JournalEntriesfor2010,AccountingforNetOperatingLosses,LO8Applyaccountingproceduresforalosscarrybackandalosscarryforward.,Incometaxrefundreceivable140,000Benefitduetolosscarryback140,000Deferredtaxasset60,000Benefitduetolosscarryforward60,000,BE19-14(CarrybackandCarryforwardwithValuationAllowance):UsetheinformationforRodeInc.giveninBE19-13.Assumethatitismorelikelythannotthattheentirenetoperatinglosscarryforwardwillnotberealizedinfutureyears.Prepareallthejournalentriesneces