Demystify Deferred Tax
Presenters : Caryn Maitland
Overview
Deferred tax is one of the most misunderstood and often intimidating areas in financial reporting and tax compliance. It typically emerges late in the reporting process, leading to confusion, inconsistencies, and last-minute adjustments. This video demystifies deferred tax by unpacking the underlying concepts, clarifying the accounting logic, and equipping you with straightforward tools to approach it confidently.
The session covers deferred tax principles under IFRS and IFRS for SMEs, explains the distinction between temporary and permanent differences, and examines how tax bases, carrying amounts, and expected future tax consequences interact. Whether you are preparing financial statements, reviewing tax computations, or training your team, this video provides practical knowledge and real-world examples to bring clarity to this complex topic.
Video Content
- Understanding the objective and scope of deferred tax: why it exists and when it applies
- Identifying temporary differences versus permanent differences in practice
- Calculating deferred tax assets and liabilities, including recognition thresholds
- Practical treatment of common items such as PPE, provisions, revaluations, and tax losses
- Presentation and disclosure requirements under IFRS and IFRS for SMEs
Competencies Developed
After watching this video, you can:
- Explain the concept of deferred tax and its role in aligning accounting and tax effects
- Accurately identify and calculate deferred tax on a variety of common transactions
- Apply recognition and measurement principles for deferred tax assets and liabilities
- Enhance the accuracy and consistency of year-end tax workings and financial statements
- Understand disclosure requirements and communicate deferred tax clearly in financial notes