In this lesson, Nick Palazzolo, CPA, delves into the intricacies of accounting for changes in future tax rates and their immediate impact on tax expense reporting. He clarifies that adjustments due to fluctuating tax rates are recorded instantly, following the principle of prospective treatment, much like other changes in estimates. This ties back to the foundational principles of accounting for changes and error corrections, providing a practical lens to understand how tax rate revisions affect financial statements and the subsequent need for transparency in financial reporting.
Lesson: Revision of Future Tax Rates
Instructor: Nick Palazzolo
In this lesson, Nick Palazzolo, CPA, delves into the intricacies of accounting for changes in future tax rates and their immediate impact on tax expense reporting. He clarifies that adjustments due to fluctuating tax rates are recorded instantly, following the principle of prospective treatment, much like other changes in estimates. This ties back to the foundational principles of accounting for changes and error corrections, providing a practical lens to understand how tax rate revisions affect financial statements and the subsequent need for transparency in financial reporting.
Updated: Oct. 20, 2021 Create an account
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Financial Statement Accounts
Module:
9 Concepts,
123 Lessons
Bank Reconciliation
2:17
BASE Formula
1:31
Trade Discounts
3:33
Bad Debt Expense
3:35
Cost Flow Methods
1:31
Inventory Summary
2:35
Land Costs
1:28
Plant Costs
3:00
Equipment Costs
3:04
Valuation Issues
1:39
Goodwill Impairment
2:27
Intangibles Summary
1:09
Current Liabilities
2:10
Notes Payable
1:08
Unearned Revenue
1:36
Long Term Debt
1:28
Equity Overview
1:14
Equity Objectives
0:55
Stockholders Rights
0:58
Types of Dividends
7:03
Equity Summary
1:10
Net Operating Losses
1:47
Income Taxes Summary
0:31
