Workshop Overview

This one-day workshop delves into the complexities of accounting for income taxes under SFRS(I) 1-12, offering clarity on both current and deferred taxation. Many finance professionals struggle with these concepts, as they require a deep understanding of tax laws and accounting standards. Through conceptual discussions and practical applications, this session will break down key challenges, including permanent vs. timing differences, taxable/deductible temporary differences, and deferred tax recognition rules. Attendees will gain a structured approach to applying SFRS(I) 1-12, ensuring accurate financial reporting and compliance.

This course will require participants to bring along their Laptop to complete illustrations on lease accounting using Excel.

Your laptop should be installed with Microsoft Excel 2010 and above with full installation. Participants should have basic knowledge of Excel.

Programme Outline

1. Examine the Accounting for Income Taxes under SFRS(I) 1-12

• Current vs. deferred tax expense/income
• Current vs. deferred tax liability/asset
• Concepts of permanent and timing differences

2. Apply the Balance Sheet Liability Approach to Deferred Taxation under FRS 12

• Carrying amount and tax base of an asset and a liability
• Taxable and deductible temporary differences
• Relationship between timing and temporary differences
• Two principles of deferred taxation
• 3-step approach to deferred taxation

3. Identify the Main Sources of Temporary Differences

• Common scenarios leading to temporary differences
• Impact on financial statements

4. Understand and Apply the Accounting for Tax Losses Carry Back and Carry Forward

• Accounting treatment for tax loss relief
• Recognition criteria and measurements

5. Discuss the Initial Deferred Taxation Recognition Exemption for Assets and Liabilities

• Initial recognition exemption for assets/liabilities
• Deferred tax in business combinations (fair value adjustments, consolidation adjustments)

6. Examine Deferred Taxation on Consolidation in relation to Fair Value Adjustments and Additional Assets and Liabilities Recognized on Initial Acquisition of a Subsidiary

7. Review the Issues in Measurement, Presentation and Disclosure of Current and Deferred Tax

• Financial statement presentation of current/deferred taxes
• Key disclosure obligations under SFRS(I) 1-12

Key Takeaways

By the end of this workshop, participants will:

✔ Master the core principles of current and deferred tax accounting under SFRS(I) 1- 12.

✔ Apply the balance sheet liability approach to deferred taxes with confidence.

✔ Identify and assess temporary differences and their financial impact.

✔ Correctly account for tax losses, consolidation adjustments, and exemptions.

✔ Improve compliance with presentation and disclosure requirements.

Who Should Attend?

This workshop is designed for:

• Accountants & Finance Professionals involved in financial reporting

• Auditors reviewing tax-related disclosures

• Tax Specialists seeking deeper knowledge of accounting standards

• Financial Controllers & CFOs ensuring accurate tax reporting

• Corporate Finance & Investment Analysts interpreting tax impacts
This workshop qualifies for 7.0 CPE hours in Financial and Sustainability Reporting Standards and Pronouncements (Category 1).