Tax Effect Accounting and Financial Modelling

How to assess and reflect the impact of tax and the implications of strategic decisions in financial and management reporting.

Financial Modelling is a vital skill for accounting and finance professionals, especially as we face significant uncertainty in business trading conditions.

No matter what business you are in, cash is king and all ‘for profit’ organisations have to pay tax in some way, shape or form. Tax cannot be left as an after-thought as this can lead to unexpected and unfavourable results.

Building a robust financial model is made considerably more complex when factoring in the tax implications of legislative changes, differing tax treatments for accounting vs statutory obligations and of course the ‘curve ball’ of international tax.

This session will provide practical guidance on how to approach and deal with these tax considerations for the purposes of recording, reporting and modelling including:

• a deep dive into the complexities of tax and tax effect accounting (this won’t go into specific tax legislation but focus on the principles)
• accounting flows and journals and how tax items can complicate things
• a closer look at deferred tax and modelling international tax
• a technical review of modelling approaches and working solutions

This comprehensive training will address the following tax elements:

• Indirect Tax (GST)
• Payroll Tax
• Income Tax
• Land Tax
• Deferred Tax
• International Tax

Whilst it is not feasible to cover the detailed legislation underpinning each of these, they will be covered from conceptual definition to the practical application and embedding into reporting and modelling decisions (use case examples will be provided for each).

At all times we will be following best practice principles and standards when it comes to building our models and logic.

The discussion will also consider ways to model the different tax treatments to see how they affect the ultimate outcome and how this might influence decisions.

Attendees will be provided with slides and an example model to revisit these concepts and practice the steps to help bring this to life.

Learning Outcomes:

Attendees will gain an understanding of:

• the complexities and intricacies of tax accounting 
• complex tax scenarios and how tax can impact strategic decision making
• how to approach modelling complex tax implications
• specific tax complexities relating to a given use case
• what steps to take to practice and understand the methods discussed.

Suited to:

Management accountants, FP&A, CFOs. Attendees may also include those in private practice, Virtual /Fractional CFOs providing advisory and other business consulting services to clients.

Anyone seeking to understand tax considerations in modelling as well as those who wish to sharpen their skills and benchmark against best practice.

This On Demand includes: 

• a recording of the webinar Event which can be viewed multiple times
• a PDF of the presenter’s PowerPoint
• a verbatim Transcript
• any supporting documentation
• a CPD Certificate after successful completion of the Knowledge Quiz