This course is designed for institutions filing federal income taxes as a C Corporation and seeking to gain an understanding of accounting as required under U.S. GAAP. Institutions filing federal tax returns under Sub-chapter S status may not find this course applicable.
Bank Accounting: Deferred Income Taxes: It’s Really Just Math! – Part 1
May 22, 2025 | 1:30 pm – 3:30 pm CDT
What You’ll Learn
- The math and formula behind the proper accrual for income tax expense or benefit
- The reconciliation of book net income (loss) to taxable net income (loss)
- Understanding permanent vs temporary differences between book net income (loss) and taxable net income (loss)
- The concept of recognition and measurement under U.S. GAAP
- Deferred tax assets vs deferred tax liabilities
- Current tax assets vs current tax liabilities
- The accounting equation for income taxes with explanative illustrations
- Accounting for net operating tax losses (NOLs)
- Corporate statutory tax rate vs effective tax rate explained
- Illustrations of net income (loss) book-to-tax reconciliation and the key role permanent differences have in that equation
- Illustrations related to the accounting for temporary (or timing) book vs tax differences that originate from fixed asset depreciation
Bank Accounting: Deferred Income Taxes: It’s Really Just Math! – Part 2
May 28, 2025 | 1:30 pm – 3:30 pm CDT
What You’ll Learn
- Illustrations related to the accounting for temporary (or timing) book vs tax differences that originate from the allowance for credit losses, share-based compensation, OREO activities, loan origination fees and costs, and non-performing loans
- The purpose of a valuation allowance recorded against an NOL asset or deferred tax asset
- The concept of windfall tax benefits originating from share-based compensation arrangements
- Illustrations on booking, amortizing, and the tax effects on goodwill and core deposit intangibles resulting from a business combination
- The appropriate accounting for taxes between a bank and its holding company and the requirements of a tax sharing agreement
Who Should Attend
The course is ideal for those who understand the basis of accounting and desire to have a deeper grasp of the concepts behind accounting for federal income taxes as required under U.S. GAAP. This course provides a simplified approach to understanding the accrual and accounting requirements for current and deferred income taxes.