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Financial Accounting - Lecture 10

Lecture 10 - Accounting for Taxes


1. Understand the differences between tax accounting and financial accounting:
a. Timing: temporary differences.
b. Scope: permanent differences.

2. Understand the effects of events on income taxes
a. Net operating losses.
b. Valuation allowances.
c. Changes in tax rates.

3. Explore the concepts of "Deferred Tax Liability" and "Deferred Tax Asset."

4. Interpret income tax disclosures.

Prof. Richard Frankel, Prof. George Plesko, Prof. Kin Lo
15.515 Financial Accounting, Fall 2003
(Massachusetts Institute of Technology: MIT OpenCourseWare)
Date accessed: 2009-04-30
License: Creative Commons BY-NC-SA

Lecture Material

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Supplementary lecture material is listed below.

1. Example
Example to Illustrate Net Operating Tax-Loss Carry forwards, Changes in Future Tax Rates, and the Valuation Allowance



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