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 an understanding of accounting for Federal Income Taxes as required under U.S. GAAP, this series will provide participants with an overview of 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.
What You'll Learn
Each webinar in the series will cover specific topics relative to the subject matter.
Accounting for Income Taxes - Part 1
April 3, 2024 | 1:30 pm - 3:30 pm CDT
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
April 4, 2024 | 1:30 pm - 3:30 pm CDT
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.
Instructors
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.