Chapter 16 Accounting for Income Taxes

TeacherChapter 16 focuses on accounting for income taxes.  It devotes most of the discussion to the accounting implications of something called temporary differences.  A temporary difference is an item of revenue or expense that is treated differently in a specific time period in the determination of pretax accounting income versus taxable income.

Why would there be a difference in the treatment of revenue or expense items?  The reason is that two different bodies, with two different objectives promulgate rules relating to the recognition of revenue and expense in a specific time period.  Financial accounting standards, promulgated by the Financial Accounting Standards Board, are established to provide useful information to the users of financial statements.  Congress on the other hand, legislates the tax laws with the primary focus of raising revenue.  Because of this, pretax accounting income may be different than taxable income in a certain period, causing tax expense to be different from taxes payable.

The lecture for Chapter 16 is broken down into two components.  The first deals with the general requirements for accounting for income taxes.  The second focuses on the nuances related to the accounting for income taxes.

(Note:  To view the lecture material on an IOS device, you will need to download the Articulate Mobile Player from the App Store):

Accounting for Income Taxes:  Part 1 – In General (23:35 minutes);  PDF Handout

Accounting for Income Taxes:  Part 2 – The Nuances (8:34); PDF Handout

Assigned Exercises:
Exercise 16-3 (5:56 minutes); PDF Handout
Exercise 16-4 (1:58 minutes); PDF Handout
Exercise 16-5 (1:31 minutes); PDF Handout
Exercise 16-6 (3:52 minutes); PDF Handout
Exercise 16-7 (5:08 minutes); PDF Handout
Exercise 16-10 (2:43 minutes); PDF Handout
Exercise 16-11 (3:24 minutes); PDF Handout
Exercise 16-14 (4:10 minutes); PDF Handout
Exercise 16-15 (2:56 minutes); PDF Handout
Exercise 16-17 (2:12 minutes); PDF Handout
Exercise 16-18 (2:35 minutes); PDF Handout
Exercise 16-25 (4:27 minutes); PDF Handout

Assigned Problems
Problem 16-1 (6:35 minutes); PDF Handout
Problem 16-3 (5:36 minutes); PDF Handout
Problem 16-5 (6:25 minutes); PDF Handout
Problem 16-7 (9:25 minutes); PDF Handout
Problem 16-9 (7:53 minutes); PDF Handout