Learning Module 9 of Financial Statement Analysis 11–14% of the exam
Analysis of Income Taxes
4 lessons. About 0 minutes in cram mode, 0 minutes in full.
Lessons for this module are being written. The outcomes and lesson plan below are final.
Lessons
- 1 Differences between Accounting Profit and Taxable Income
Coming soon
- 2 Deferred Tax Assets and Liabilities
Coming soon
- 3 Corporate Income Tax Rates
Coming soon
- 4 Presentation and Disclosure
Coming soon
What the exam expects you to do
- Contrast accounting profit, taxable income, taxes payable, and income tax expense and temporary versus permanent differences between accounting profit and taxable income.
- Explain how deferred tax liabilities and assets are created and the factors that determine how a company’s deferred tax liabilities and assets should be treated for the purposes of financial analysis.
- Calculate, interpret, and contrast an issuer’s effective tax rate, statutory tax rate, and cash tax rate.
- Analyze disclosures relating to deferred tax items and the effective tax rate reconciliation and explain how information included in these disclosures affects a company’s financial statements and financial ratios.