It’s Just Math! Accounting for Bank Income Taxes for Beginners

Designed for bankers new to accounting for income taxes, and those seeking a refresher course on the basic accounting concepts underlying the recording of income taxes, to include determination of deferred assets, deferred liabilities, and the accrual for income tax expense (benefit).

The webinar covers the basic concepts of accounting for income taxes as required under U.S. GAAP with a focus on areas common to banks. A discussion on the concept of permanent and temporary differences impacting the accounting for income taxes will provide the participants with an understanding of the book-to-tax reconciliation process. A discussion of the common transactions and financial statement items that generate permanent and temporary differences for banks will be provided along with examples to illustrate the accounting for income tax expense (benefit) accruals, deferred tax assets, and deferred tax liabilities.

Covered Topics

  • General discussion of Generally Accepted Accounting Principles in the United States (U.S. GAAP) relative to accounting for income taxes, to include the concept of book net income (loss) vs. taxable net income (loss), also referred to as “book vs. tax.”
  • Discussion on the concept of permanent and temporary differences impacting “book vs. tax” with focus on the common areas impacting a bank’s financial statements.
  • A discussion of the common transactions and financial statement items that generate permanent or temporary differences for banking organizations.
  • Examples to illustrate the accounting for income tax expense (benefit) accruals, deferred tax assets, and deferred tax liabilities. A book-to-tax reconciliation will also be provided.

Who Should Attend?

This webinar is designed for those who are new to accounting for bank income taxes or those who are looking for a simple way to make sense of the basic mathematical and accounting concepts surrounding appropriate accounting for income taxes.