This session is delivered via live webinar (zoom platform).

Introduction
Setting up deferred tax computation lead schedule and supporting working papers for “temporary difference approach” is inherently more complex that “timing different approach”. The former is based on the difference between accounting balance sheet and tax balance sheet while the later is based on accounting profit or loss and tax profit or loss. FRS12/IAS12 requires several steps in determining deferred tax information, first is the construction of a tax balance sheet that involved the determination of ‘tax base’ for each asset and liability recognised in the accounting balance sheet in order to calculate taxable or deductible temporary differences. This is followed by the recognition and measurement of deferred tax assets or deferred tax liabilities, and final hurdle is the presentation and disclosure of deferred tax information in the financial statements. Each of these steps does pose significant challenges to practicing accountants.
 
Programme Objectives
There are two main objectives, first is to provide a systematic approach to the computation of deferred tax information in order to enhance your skills of applying the fundamental principles of FRS12/IAS12. The second is to provide practical guidance on how to use spreadsheet to facilitate the complex task of deferred tax computation based on “balance sheet liability approach”
 
The seminar achieved the above objectives by:
1st       Honing your knowledge in the fundamental principles of FRS12/IAS12

•  providing step-by-step guide on how the principles of deferred taxation are applied in practice
• using case study approach to explain the complex technical requirements of the Standard

2nd     Show you how to design deferred tax computation format using spreadsheet

• Designing a master deferred tax computation lead schedule, supporting schedules and working papers
• How to incorporate the spreadsheet working papers to facilitate the complex disclosure requirements

Programme Outline

History, Development and objective of Deferred Taxation

• The difference between deferral method and liability method
• Timing difference method Versus temporary difference method
• The concept of future tax consequences

 
Understanding and Determining Tax Base of Assets and Liabilities

• Non-current assets: assets with capital allowance and those without
• Current assets: inventories, receivables, prepayments, cash
• Current liabilities: payables, accruals, deferred income
• Non-current liabilities: long-term borrowings

 
Recognition of Deferred Tax Assets and Liabilities

• The four practical steps of recognising deferred tax assets and liabilities
• Determining deductible temporary difference and taxable temporary difference
• Accounting for deferred tax liability and asset arising from initial recognition

 
Measurement of Deferred Tax Assets and Deferred Tax Liabilities

• Determining tax rate enacted and substantively enacted
• Manner of recovery or settlement of assets and liabilities

 
Presentation and Disclosure

• Presenting deferred tax in profit and loss and other comprehensive income
• Presenting deferred tax assets and liabilities in statement of financial position
• Disclosure of accounting policies, notes to support deferred tax expense/income and deferred tax assets and liabilities
• Designing working papers to facilitate quantitative disclosure requirements

 
Computation Format Using Spreadsheet

• A comprehensive case study on how to design and use spreadsheet for computing deferred taxation

 
Pre-requisites

Please take note of the following admission requirements:

• Trainings will be conducted on Zoom platform, thus video camera and microphone are compulsory
• Mandatory for video camera to be turned on throughout the course
• Display your official name (as per NRIC) in Zoom, to facilitate attendance taking

Training Methodology

Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions. 

Closing Date for Registration

1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that examines the use of spreadsheet to determine deferred tax assets and liabilities based on balance sheet liability method are welcome to attend.

NOTE: Participants are required to bring their own laptop installed with Mocrosoft Office 2016 and above. 

Competency Mapping

Category 1 = 7.00 Hours

Programme Facilitator(s)