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Description

Deferred Tax in Consolidation: Calculating, Substantiating and Presenting the Tax Proof

Secure deferred tax calculations and build a tax proof that can be justified line by line

  • 3 days — 21 h
  • In-person or virtual
  • Expert
  • Up to 6 participants

In consolidated reporting, the tax charge is the caption that resists review the most. Temporary differences are listed incompletely, tax loss carry-forwards are recognised without any demonstration of recoverability, and the reconciliation between the theoretical and the effective tax charge contains an unexplained balancing line that immediately draws the auditors' attention.

These three days are designed for experienced practitioners. They cover the full mechanics of deferred tax under IAS 12, then the construction of the tax proof through to the information published in the notes. Cases are worked on reconstructed consolidation packages involving several entities and several tax rates.

Learning objectives

  • Identify temporary differences from tax and consolidated balance sheets
  • Calculate deferred tax assets and liabilities at the rate applicable on reversal
  • Demonstrate the recoverability of deferred tax assets arising from tax losses
  • Address deferred tax arising from consolidation adjustments and business combinations
  • Build the tax proof and explain every reconciling difference
  • Draft the tax and deferred tax disclosures expected in the notes

What makes this programme different

The tax proof is built live in the session on a multi-entity package involving several tax rates
A deferred tax substantiation file is formalised exactly as it will be presented to the auditor
The cases worked include a business combination and a loss-making operation

Programme

1Foundations of deferred tax

Returning to the balance sheet approach so that nothing is missed

  • Distinguish the tax base from the carrying amount of an asset or a liability
  • Identify taxable and deductible temporary differences
  • Position the exceptions to the recognition of deferred tax
  • Determine the rate applicable at the expected date of reversal
  • Allocate deferred tax to profit or loss or to equity according to its origin

2Identification and measurement across the group

Covering every source without double counting

  • Collect temporary differences from subsidiaries
  • Address deferred tax arising from accounting policy alignment adjustments
  • Handle the elimination of intragroup profits and the related tax effect
  • Take account of rate differences between jurisdictions
  • Organise the offsetting of deferred tax assets and liabilities

3Tax losses and recoverability

Substantiating a recognition that will be challenged

  • Distinguish ordinary tax losses from carry-forward tax credits
  • Build the utilisation horizon from the business plan
  • Document the supporting evidence in a context of recent losses
  • Address utilisation limitations and the effects of tax grouping regimes
  • Reassess recognition at each closing and track reversals

4Complex situations

Handling the cases that fall outside the standard pattern

  • Account for deferred tax in a business combination
  • Address goodwill and the remeasurement of identifiable assets
  • Handle differences relating to consolidated investments and expected distributions
  • Address the effects of a change in tax rate or in scope of consolidation
  • Track deferred tax on the disposal of an entity

5Tax proof and note disclosure

Explaining the gap between theoretical and recognised tax

  • Build the reconciliation from consolidated profit before tax
  • Isolate the effect of permanent differences and foreign tax rates
  • Explain the effect of unrecognised tax losses and of recognitions for the year
  • Reduce the unexplained reconciling line
  • Draft the notes on tax and deferred tax

Who is it for

Consolidation managers · consolidation accountants · group financial controllers and auditors working on consolidated financial statements.

Prerequisites

Sound command of consolidation techniques and the ability to read a consolidation package.

Dates & locations

24 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.