This module covers how to distinguish temporary differences from permanent differences and classify common book-tax items as deferred tax assets or deferred tax liabilities. You'll be able to apply a decision sequence to classify provision items correctly and trace how a temporary difference originates and reverses over time using a depreciation example. Accurate classification is critical because misclassifying even one item can misstate deferred tax balances and distort provision results.

This module covers the structure of a deferred tax roll forward and the standard tabs in a provision workpaper file. You'll be able to populate a roll forward using opening balances, additions, and reversals, and build provision outputs from trial balance and tax adjustment inputs. These skills matter because the roll forward and workpaper file are the core deliverables tax analysts produce during each reporting close.

This module covers how to reconcile provision outputs to financial statement tax footnotes, identify common ASC 740 provision errors, and communicate findings to supervisors and finance stakeholders. You'll be able to perform tie-outs for total tax expense, current tax, deferred tax, and rate reconciliation items, and flag issues such as misclassified permanent items or unsupported beginning balances. These review and communication skills are essential because provision accuracy directly affects audit support, disclosure reliability, and stakeholder confidence in reported tax results.