Chapter 8: Analysis of Income Taxes

In this section

• Accounting Profit vs. Taxable Income
  Accounting Profit vs. Taxable Income (CFA Level 1): Distinguishing Accounting Profit from Taxable Income, Accounting Profit (Pretax Financial Income), and Taxable Income. Key definitions, formulas, and exam tips.
• Temporary vs. Permanent Differences
  Temporary vs. Permanent Differences (CFA Level 1): Test Your Knowledge: Temporary vs. Permanent Differences and and Which statement best describes how temporary differences affect. Key definitions, formulas, and exam tips.
• Deferred Tax Assets and Liabilities
  Deferred Tax Assets and Liabilities (CFA Level 1): Setting the Stage: The Difference Between Accounting and, Key Terms and Concepts, and Mechanics of DTAs and DTLs. Key definitions, formulas, and exam tips.
• Effective Tax Rate vs. Statutory Tax Rate vs. Cash Tax Rate
  Effective Tax Rate vs. Statutory Tax Rate vs. Cash Tax Rate (CFA Level 1): Differentiating the Three Tax Rates, Statutory Tax Rate, and Effective Tax Rate. Key definitions, formulas, and exam tips.
• Valuation Allowances for Deferred Tax Assets
  Valuation Allowances for Deferred Tax Assets (CFA Level 1): Understanding Deferred Tax Assets and the Concept of, Quick Analogy, and Key Drivers for Recording and Adjusting Valuation Allowances. Key definitions, formulas, and exam tips.
• Uncertain Tax Positions and Interpretations
  Uncertain Tax Positions and Interpretations (CFA Level 1): Recognition and Measurement and Impact on Financial Statements. Key definitions, formulas, and exam tips.
• Impact of Tax Holidays on Deferred Taxes
  Impact of Tax Holidays on Deferred Taxes (CFA Level 1): Definition and Purpose of Tax Holidays, Types of Tax Holidays, and Deferred Tax Implications. Key definitions, formulas, and exam tips.
• Capital Gains vs. Ordinary Income Taxation
  Capital Gains vs. Ordinary Income Taxation (CFA Level 1): Ordinary Income vs. Capital Gains, Short-Term vs. Long-Term Capital Gains, and Corporate Entities and Capital Gains Taxation. Key definitions, formulas, and exam tips.
• Corridor Approaches and Recognition of Actuarial Gains/Losses
  Corridor Approaches and Recognition of Actuarial Gains/Losses (CFA Level 1): Why These Gains and Losses Happen, Corridor Approach Under Older US GAAP, and Illustrative Diagram. Key definitions, formulas, and exam tips.
• IFRS vs. US GAAP Differences in Income Tax Accounting
  IFRS vs. US GAAP Differences in Income Tax Accounting (CFA Level 1): Foundational Similarities Under IFRS and US GAAP, Recognition of Deferred Tax Assets, and Uncertain Tax Positions. Key definitions, formulas, and exam tips.