10/15/24, 9:48 Kieso IFRS2e SM Ch19 - Solution Manual for book exercise
AM intermediate a…
CHAPTER 19
Accounting for Income
Taxes
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Brief Concepts
Topics Questions Exercises Exercises Problems for Analysis
1. Reconcile pretax financial 1, 12 1 1, 2, 4, 7, 12, 1, 2, 3, 8
income with taxable 18, 20, 21
income.
2. Identify temporary 3, 4, 5 4, 5, 6, 7 2, 3, 4 3, 4,
and permanent 5
differences.
3. Determine deferred income 6, 7, 12 2, 3, 4, 5, 1, 3, 4, 5, 7, 3, 4, 8, 9 2
8,
taxes and related items— 6, 7, 9 12, 14, 15,
19,
single tax rate. 21, 23, 25
4. Classification of deferred 10, 11 15 7, 11, 16, 18, 3, 6 2, 3,
5
taxes. 19, 20, 21,
22
5. Determine deferred income 10 2, 13, 16, 17, 1, 2, 6, 7 1, 6,
7
taxes and related items— 18, 20, 22
multiple tax rates,
expected future
income.
6. Determine deferred 10
taxes, multiple rates,
expected future losses.
7. Carryback and 15, 16, 12, 13, 9, 10, 23, 5
carryforward 17 14
of NOL. 24, 25
8. Change in enacted 13 11 16 2, 7 5, 6
future tax rate.
9. Tracking temporary 8, 17 2, 7
differences through
reversal.
10. Income statement 9 8 1, 2, 3, 4, 5, 1, 2, 3,
presentation. 7, 5,
10, 12, 16, 7, 8, 9
19,
23, 24, 25
11. Conceptual issues—tax 1, 2, 8 7 1, 2,
allocation. 7
12. Non-recognition—deferred 8 7 7, 14, 15, 23,
tax
asset. 24, 25
13. Disclosure and other 14
issues.
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)19-1
about:bl 1/
,10/15/24, 9:48 Kieso IFRS2e SM Ch19 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Brief
Learning Objectives Exercises Exercises
Problems
1. Identify differences between 1, 2, 5
pretax financial income and
taxable income.
2. Describe a temporary difference that 1, 2, 4, 9, 10 1, 2, 3, 4, 5, 7, 1, 3, 4, 6,
results in future taxable amounts. 8, 11, 12, 13, 7, 8, 9
16, 17, 18, 19,
20, 21, 22
3. Describe a temporary difference that 5, 6, 9 4, 5, 7, 8, 11, 1, 2, 4,
12,
results in future deductible amounts. 14, 15, 17, 18, 6, 8, 9
19, 20, 21, 22
4. Explain the non-recognition of a 7, 14 7, 14, 15, 23,
deferred tax
asset. 24, 25
5. Describe the presentation of income tax 4, 6, 8 1, 3, 4, 5, 8, 1, 2, 3, 4,
expense in the income statement. 12, 15, 16 5, 7, 8, 9
6. Describe various temporary and 4, 6, 7 2, 3, 9
permanent differences.
7. Explain the effect of various tax rates 11 13, 16, 17, 18, 5, 7
and
tax rate changes on deferred income 21, 23, 24, 25
taxes.
8. Apply accounting procedures for a loss 12, 13, 14 9, 10, 23, 5
carryback and a loss carryforward. 24, 25
9. Describe the presentation of income 3, 15 8, 11, 16, 19, 3, 5, 6, 8,
taxes 9
in financial statements. 20, 21, 22
19-2 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:bl 2/
,10/15/24, 9:48 Kieso IFRS2e SM Ch19 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE
Level Time
Item of (minute
Difficult s)
Description y
E19-1 One temporary difference, future taxable amounts,
Simple 15–20
one rate, no beginning deferred taxes.
E19-2 Two differences, no beginning deferred taxes, tracked
Simple 15–20
through 2 years.
E19-3 One temporary difference, future taxable amounts, Simple 15–20
one rate, beginning deferred taxes.
E19-4 Three differences, compute taxable income, entry for taxes. Simple
15–20
E19-5 Two temporary differences, one rate, beginning deferred taxes. Simple
15–20
E19-6 Identify temporary or permanent differences. Simple 10–15
E19-7 Terminology, relationships, computations, entries. Simple 10–15
E19-8 Two temporary differences, one rate, 3 years. Simple 10–15
E19-9 Carryback and carryforward of NOL, no temporary differences. Simple
15–20
E19-10 Two NOLs, no temporary differences, entries and Moderate 20–25
income statement.
E19-11 Three differences, classify deferred taxes. Simple 10–15
E19-12 Two temporary differences, one rate, beginning Complex 20–25
deferred taxes, compute pretax financial income.
E19-13 One difference, multiple rates, effect of beginning Simple 20–25
balance versus no beginning deferred taxes.
E19-14 Deferred tax asset. Moderate 20–25
E19-15 Deferred tax asset. Complex 20–25
E19-16 Deferred tax liability, change in tax rate, prepare Complex 15–20
section of income statement.
E19-17 Two temporary differences, tracked through Moderate 30–35
3 years, multiple rates.
E19-18 Three differences, multiple rates, future taxable income. Moderate 20–25
E19-19 Two differences, one rate, beginning deferred balance, Complex 25–30
compute pretax financial income.
E19-20 Two differences, no beginning deferred taxes, multiple rates. Moderate
15–20
E19-21 Two temporary differences, multiple rates, future Moderate 20–25
taxable income.
E19-22 Two differences, one rate, first year. Simple 15–20
E19-23 NOL carryback and carryforward, recognition Complex 30–35
versus non-recognition.
E19-24 NOL carryback and carryforward, non-recognition. Complex 30–35
E19-25 NOL carryback and carryforward, non-recognition. Moderate 15–20
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)19-3
about:bl 3/
, 10/15/24, 9:48 Kieso IFRS2e SM Ch19 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE (Continued)
Item
Level Time
Description of (minute
Difficult s)
y
P19-1 Three differences, no beginning deferred taxes, multiple rates. Complex 40–45
P19-2 One temporary difference, tracked for 4 years, one Complex 50–60
permanent difference, change in rate.
P19-3 Second year of depreciation difference, two Complex 40–45
differences, single rate.
P19-4 Permanent and temporary differences, one rate. Moderate 20–25
P19-5 Recognition of NOL. Simple 20–25
P19-6 Two differences, two rates, future income expected. Moderate 20–25
P19-7 One temporary difference, tracked 3 years, change Complex 45–50
in rates, income statement presentation.
P19-8 Two differences, 2 years, compute taxable income Complex 40–50
and pretax financial income.
P19-9 Five differences, compute taxable income and Complex 40–50
deferred taxes, draft income statement.
CA19-1 Objectives and principles for accounting for income taxes. Simple 15–20
CA19-2 Basic accounting for temporary differences. Moderate 20–25
CA19-3 Identify temporary differences and classification criteria. Complex 20–25
CA19-4 Accounting for deferred income taxes. Moderate 20–25
CA19-5 Explain computation of deferred tax liability for multiple tax rates. Complex 20–25
CA19-6 Explain future taxable and deductible amounts, how Complex 20–25
carryback and carryforward affects deferred taxes.
CA19-7 Deferred taxes, income effects. Moderate 20–25
19-4 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:bl 4/
AM intermediate a…
CHAPTER 19
Accounting for Income
Taxes
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Brief Concepts
Topics Questions Exercises Exercises Problems for Analysis
1. Reconcile pretax financial 1, 12 1 1, 2, 4, 7, 12, 1, 2, 3, 8
income with taxable 18, 20, 21
income.
2. Identify temporary 3, 4, 5 4, 5, 6, 7 2, 3, 4 3, 4,
and permanent 5
differences.
3. Determine deferred income 6, 7, 12 2, 3, 4, 5, 1, 3, 4, 5, 7, 3, 4, 8, 9 2
8,
taxes and related items— 6, 7, 9 12, 14, 15,
19,
single tax rate. 21, 23, 25
4. Classification of deferred 10, 11 15 7, 11, 16, 18, 3, 6 2, 3,
5
taxes. 19, 20, 21,
22
5. Determine deferred income 10 2, 13, 16, 17, 1, 2, 6, 7 1, 6,
7
taxes and related items— 18, 20, 22
multiple tax rates,
expected future
income.
6. Determine deferred 10
taxes, multiple rates,
expected future losses.
7. Carryback and 15, 16, 12, 13, 9, 10, 23, 5
carryforward 17 14
of NOL. 24, 25
8. Change in enacted 13 11 16 2, 7 5, 6
future tax rate.
9. Tracking temporary 8, 17 2, 7
differences through
reversal.
10. Income statement 9 8 1, 2, 3, 4, 5, 1, 2, 3,
presentation. 7, 5,
10, 12, 16, 7, 8, 9
19,
23, 24, 25
11. Conceptual issues—tax 1, 2, 8 7 1, 2,
allocation. 7
12. Non-recognition—deferred 8 7 7, 14, 15, 23,
tax
asset. 24, 25
13. Disclosure and other 14
issues.
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)19-1
about:bl 1/
,10/15/24, 9:48 Kieso IFRS2e SM Ch19 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Brief
Learning Objectives Exercises Exercises
Problems
1. Identify differences between 1, 2, 5
pretax financial income and
taxable income.
2. Describe a temporary difference that 1, 2, 4, 9, 10 1, 2, 3, 4, 5, 7, 1, 3, 4, 6,
results in future taxable amounts. 8, 11, 12, 13, 7, 8, 9
16, 17, 18, 19,
20, 21, 22
3. Describe a temporary difference that 5, 6, 9 4, 5, 7, 8, 11, 1, 2, 4,
12,
results in future deductible amounts. 14, 15, 17, 18, 6, 8, 9
19, 20, 21, 22
4. Explain the non-recognition of a 7, 14 7, 14, 15, 23,
deferred tax
asset. 24, 25
5. Describe the presentation of income tax 4, 6, 8 1, 3, 4, 5, 8, 1, 2, 3, 4,
expense in the income statement. 12, 15, 16 5, 7, 8, 9
6. Describe various temporary and 4, 6, 7 2, 3, 9
permanent differences.
7. Explain the effect of various tax rates 11 13, 16, 17, 18, 5, 7
and
tax rate changes on deferred income 21, 23, 24, 25
taxes.
8. Apply accounting procedures for a loss 12, 13, 14 9, 10, 23, 5
carryback and a loss carryforward. 24, 25
9. Describe the presentation of income 3, 15 8, 11, 16, 19, 3, 5, 6, 8,
taxes 9
in financial statements. 20, 21, 22
19-2 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:bl 2/
,10/15/24, 9:48 Kieso IFRS2e SM Ch19 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE
Level Time
Item of (minute
Difficult s)
Description y
E19-1 One temporary difference, future taxable amounts,
Simple 15–20
one rate, no beginning deferred taxes.
E19-2 Two differences, no beginning deferred taxes, tracked
Simple 15–20
through 2 years.
E19-3 One temporary difference, future taxable amounts, Simple 15–20
one rate, beginning deferred taxes.
E19-4 Three differences, compute taxable income, entry for taxes. Simple
15–20
E19-5 Two temporary differences, one rate, beginning deferred taxes. Simple
15–20
E19-6 Identify temporary or permanent differences. Simple 10–15
E19-7 Terminology, relationships, computations, entries. Simple 10–15
E19-8 Two temporary differences, one rate, 3 years. Simple 10–15
E19-9 Carryback and carryforward of NOL, no temporary differences. Simple
15–20
E19-10 Two NOLs, no temporary differences, entries and Moderate 20–25
income statement.
E19-11 Three differences, classify deferred taxes. Simple 10–15
E19-12 Two temporary differences, one rate, beginning Complex 20–25
deferred taxes, compute pretax financial income.
E19-13 One difference, multiple rates, effect of beginning Simple 20–25
balance versus no beginning deferred taxes.
E19-14 Deferred tax asset. Moderate 20–25
E19-15 Deferred tax asset. Complex 20–25
E19-16 Deferred tax liability, change in tax rate, prepare Complex 15–20
section of income statement.
E19-17 Two temporary differences, tracked through Moderate 30–35
3 years, multiple rates.
E19-18 Three differences, multiple rates, future taxable income. Moderate 20–25
E19-19 Two differences, one rate, beginning deferred balance, Complex 25–30
compute pretax financial income.
E19-20 Two differences, no beginning deferred taxes, multiple rates. Moderate
15–20
E19-21 Two temporary differences, multiple rates, future Moderate 20–25
taxable income.
E19-22 Two differences, one rate, first year. Simple 15–20
E19-23 NOL carryback and carryforward, recognition Complex 30–35
versus non-recognition.
E19-24 NOL carryback and carryforward, non-recognition. Complex 30–35
E19-25 NOL carryback and carryforward, non-recognition. Moderate 15–20
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)19-3
about:bl 3/
, 10/15/24, 9:48 Kieso IFRS2e SM Ch19 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE (Continued)
Item
Level Time
Description of (minute
Difficult s)
y
P19-1 Three differences, no beginning deferred taxes, multiple rates. Complex 40–45
P19-2 One temporary difference, tracked for 4 years, one Complex 50–60
permanent difference, change in rate.
P19-3 Second year of depreciation difference, two Complex 40–45
differences, single rate.
P19-4 Permanent and temporary differences, one rate. Moderate 20–25
P19-5 Recognition of NOL. Simple 20–25
P19-6 Two differences, two rates, future income expected. Moderate 20–25
P19-7 One temporary difference, tracked 3 years, change Complex 45–50
in rates, income statement presentation.
P19-8 Two differences, 2 years, compute taxable income Complex 40–50
and pretax financial income.
P19-9 Five differences, compute taxable income and Complex 40–50
deferred taxes, draft income statement.
CA19-1 Objectives and principles for accounting for income taxes. Simple 15–20
CA19-2 Basic accounting for temporary differences. Moderate 20–25
CA19-3 Identify temporary differences and classification criteria. Complex 20–25
CA19-4 Accounting for deferred income taxes. Moderate 20–25
CA19-5 Explain computation of deferred tax liability for multiple tax rates. Complex 20–25
CA19-6 Explain future taxable and deductible amounts, how Complex 20–25
carryback and carryforward affects deferred taxes.
CA19-7 Deferred taxes, income effects. Moderate 20–25
19-4 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:bl 4/
