Introduction to Accounting for Income Taxes

A summary of the key principles underpinning the theory of accounting for income taxes is presented with a group activity highlighting the concepts discussed. After the group activity, students are asked to calculate a deferred tax provision independently. The provision is debriefed to ensure the learning module objectives have been met with success. The target audience is upper-level accounting majors in either a corporate tax course or auditing course.

Learning objectives
1. Understand the causes of deferred tax assets and liabilities
2. Identify differences between pretax financial income and taxable income
3. Describe a temporary difference that results in future taxable amounts
4. Describe a temporary difference that results in future deductible amounts
5. Understand the difference between permanent and temporary differences
6. Comprehend the reporting requirements of tax obligations
7. Appreciate the audit procedures pertaining to accounting for income taxes

The module includes a PowerPoint presentation, leader’s guide, and activities to support the learning objectives.

This classroom tool was developed by Dr. Barbara Porco of Fordham University in collaboration with KPMG’s Tax Learning and Development group.