IAS 12 prescribes the accounting treatment of income taxes, specifically current and deferred taxes. This course will focus on deferred tax, being the accrual accounting adjustment for income taxes payable or recoverable in the future. The main topics to be covered in this session include:
• Current versus Deferred tax.
• Identifying existing temporary differences.
• Identifying types of differences on initial recognition.
• Recognition and measurement of Deferred tax.
• Common misconceptions with Deferred tax.
• Presentation and disclosure requirements.
The course will also delve on the Deferred tax implications of immovable property given the special tax regime on the disposal of immovable property in Malta. This course is a financial reporting course, which means that income tax treatment and tax computations are out of scope. This course shall also tackle common misconceptions with Deferred tax.