Understanding Tax in Company Accounts BPP University

Overview

Accounting for taxation in company accounts, especially deferred taxation, has for a long time been a problem area for many accountants.

This course aims to steer a clear path through the tax accounting rules and disclosure requirements of FRS 102 and IAS 12, and to provide a clear and logical approach to preparing the relevant amounts for recognition and disclosure in respect of current and deferred taxation.

Learning Outcomes

By the end of this Understanding Tax in Company Accounts course at BPP University, you will be able to:

• Understand the principles of accounting for both current and deferred taxation
• Interpret required tax disclosures and assess their usefulness to readers of financial statements
• Apply tax accounting to the income statement, balance sheet, and statement of comprehensive income
• Recognise and account for adjustments arising from finalisation of tax liabilities, error correction, and changes in accounting policy
• Explain and apply the concepts of deferred taxation under both FRS 102 (timing differences) and IAS 12 (temporary differences), identifying areas of consistency and divergence
• Use the seven-step approach to deferred tax, including establishing timing differences, determining tax rates, computing balances, and allocating between profit or loss and other comprehensive income
• Apply current taxation principles to year-end balances, reconciliation, and disclosure requirements
• Address advanced tax accounting issues, including revaluations, share-based payments, pensions, business combinations, and R&D tax credits