04-18-12 Class26 Ch 20 Pensions

Also insights on the process of selling a company as

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Unformatted text preview: on Wimbish CFO Nimin Energy, Importance of financial statement footnote disclosures in the oil industry as these notes includes reports on the oil reserves held. Also, insights on the process of selling a company as the Board of Directors of Nimin Energy has announced, and is in the process of assessing the sale of the company. Chapter 24 Financial statement disclosure. Accountants and business executives are fully aware of the importance of full disclosure when presenting financial statements. However, determining what constitutes full disclosure in financial reporting is not an easy task. Thus, the purpose of this chapter is to review present disclosure requirements and gain insight into future trends in this area. Appendix 24A presents basic financial statement analysis. Wednesday, April 25, 2012 Chapter 18-6 Last Lecture Date: Review and Perspective McGraw Hill Simnet Excel Lesson and Exam McGraw Feedback Sought Feedback Chapter 18-7 Final Topics from last lecture: Accounting Final Topics from last lecture: Accounting Final Final for Income Tax Learning Objectives ffor Income Tax Learning Objectives or for 1. Covered: Identify differences between pretax financial income and taxable income. 2. Covered: Describe a temporary difference that results in future taxable amounts. 3. Covered: Describe a temporary difference that results in future deductible amounts. 4. Explain the purpose of a deferred tax asset valuation allowance. 5. Describe the presentation of income tax expense in the income statement . 6. Apply accounting procedures for a loss carryback and a loss carryforward. 7. Describe the presentation of deferred income taxes in financial statements. Chapter 18-8 Future Deductible Amounts and Deferred Taxes Future Deductible Amounts and Deferred Taxes Deferred Tax Asset—Valuation Allowance A company should reduce a deferred tax asset by a valuation allowance if it is more likely than not that it will not realize some portion or all of the deferred tax asset. “More likely than not” means a level of likelihood of at least slightly more than 50 percent. Chapter 18-9 LO 4 Explain the purpose of a deferred tax asset valuation allowance. Future Deductible Amounts and Deferred Taxes Future Deductible Amounts and Deferred Taxes Deferred Tax Asset—Valuation Allowance E19-14 Balance Sheet Presentation Asset s: De f e r r e d tax as s e...
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