[Anonymous]

Hi Guys,

I am currently studying for FAR and I am having problems understanding Income Tax Accounting in Gleim. Do you have any suggestions (youtube video, website,etc) to tackle this topic???

[confusedcandidate]

Individuals or corporate/partnerships? Or both? I would try to find a sample corporate return, and a sample individual return, plus all of the relevant workpapers and supporting documents, and then try to follow everything from beginning to end. A little context might help to put everything in perspective.

Weekends are meaningless to a CPA candidate

[Missy]

Its a super tough subject and I'm not aware of anything that makes it easier except repetition. Its important to recognize the basic though, that the tax expense hits the income statement in the period that the revenue was earned and differences between the expense and the actual tax per the IRS goes to the balance sheet as a deferred tax asset (in the cases where the payment exceeds the book expense) or deferred tax liability (in the cases where book expense exceeds the IRS payment)

Old timer,  A71'er since 2010.

Finance manager/HR manager

 

 

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[SpiritofGod]

@ confused I think you are confusing Reg income tax with FAR income tax, lol. As mla rightly said, there's not a lot out there that will help to thoroughly understand this topic. Practice, practice, practice is the key.

[monikernc]

youtube Allan Mursau does a couple of videos on deferred tax assets and liabilities. an intermediate acctg book will have it too.

AUD - 93
BEC - 82
FAR - 76
REG - 88

How have you been?
Ninja book and MCQs and the forum, all first try! 2016
Licensed State of Montana April Fool’s Day 2020
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FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Spartans92]

DTA = Future deductible. Higher taxable income now.
DTL = Future taxable. Lower taxable income now.
Temp differences cause a DTA or DTL can be warranty cost, depreciation, etc. The classification is basically the same as what gave rise to the differences. For instance, if DTL is due to depreciation of equipment then it is considered to be Noncurrent Liability. But under IFRS DTA and DTL is always considered to be Non-current.

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[confusedcandidate]

Ha, yes, I didn't read the OP and assumed REG instead of FAR. DTA and DTL are certainly tough to wrap your head around. You just have to remember that they are just timing differences – the only difference between DTA and an expense is timing. With DTA/L I liked to start with the cash out. Then figure out how much the feds are charging me. After that, just plug the difference with a DTA/L.

Weekends are meaningless to a CPA candidate

[Author]

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