Accounting for Income Taxes:  It’s Just Math and a Little Theory! - 2 Part Series

Wednesday, April 3, 2024
Thursday, April 4, 2024
Both Sessions 2:30 pm – 4:30 pm Eastern

This 2-part webinar is designed for banks filing federal income taxes as a C Corporation. Banks filing federal tax returns under Sub-chapter S status may not find this course applicable.

Designed for bankers seeking to gain an understanding of accounting for Federal Income Taxes as required under U.S. GAAP. This series will provide the participant with an overview of the requirements under Accounting Standards Codification (ASC) No 740, Income Taxes, and the practical application to a bank’s financial statements. Exercises and exhibits illustrating common bank current and deferred tax accounting journal entries and period-end balances will be provided.

Specific discussions and accounting examples for transactions and activities will be covered as described below.

Accounting for Income Taxes - Part 1
Wednesday, April 3, 2024 | 2:30 pm - 4:30 pm EST

What You Will 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 illustrated as a 3-legged stool
• Accounting for net operating tax losses (NOLs)
• The difference between the statutory tax rate and a bank’s effective tax rate
• Illustrations of a 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

Accounting for Income Taxes - Part 2
Thursday, April 4, 2024 | 2:30 pm - 4:30 pm EST

What You Will 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 a 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 designed for those who understand the basis of bank accounting and desire to have a deeper understanding of the concepts behind accounting for federal income taxes as required under U.S. GAAP. Participants will find this course provides a simplified approach to understanding the accrual and accounting requirements for current and deferred income taxes.

Field of Study:  Accounting

Skill Level:  Basic

Prerequisites:  None

Advanced Preparation:  None

Instructor

Cynthia Dopjera

Ms. Dopjera, a Certified Public Accountant, has 40 years of experience focused on accounting and regulatory reporting for financial institutions. During the first 18 years of her career, Ms. Dopjera held various positions with responsibility across all operational areas, including accounting, internal audit, Call Report preparation and review while working for community as well as regional banks.

In 2000, Ms. Dopjera joined the public accounting firm of Harper & Pearson Company, P.C., where she served as practice leader for the firm's financial institutions practice covering community and regional institutions. The firm's services included financial statement audit, accounting, tax preparation and filing, internal control audit, Call Report audit, loan and asset quality review, and design and implementation of internal controls over financial reporting frameworks for institutions regulated under FDICIA and Sarbanes-Oxley. In 2018, Ms. Dopjera retired from Harper & Pearson Company, and currently provides accounting, consulting, and training services to financial institutions.

Attendance verification for CE credits provided upon request.

Webinar Sponsored by OnCourse Learning (Total Training Solutions)

If you are having issues with registering online, please contact CBAO's Education, Training & Special Event Coordinator, Malia Widder, (614) 610-1877.