I was so stuck on this topic until I watched your video. Thank you for explaining this in a way that I can understand.
@The_Business_Doctor
2 жыл бұрын
I'm very glad the video was helpful!
@83bindle
Жыл бұрын
You are amazing!!! It makes so much sense now...thank you :)
@The_Business_Doctor
Жыл бұрын
You are so welcome!
@danieltineoc
8 ай бұрын
Hi, I love your videos. I have a question for you relate to the DIT/FIT calculation schedule. What is the easiest way to identify when the Tax Basse(UCC) of a temporal difference is zero? It is always confusing. Thanks
@The_Business_Doctor
8 ай бұрын
Hi Daniel. I'm glad you like the videos. When it comes to DIT/FIT the method I teach includes a UCC base value ONLY for capital assets. Everything else I set to a UCC value of zero. Why? The reason is that for items like pension expense, warranty, rent revenue, etc., the amount is either fully deductible or taxable when the cash is paid/received and the accruals (i.e. Pension asset/liability, warranty liability, unearned revenue) means nothing to CRA -- they don't carry a balance on those. So by setting the UCC to zero, and then subtracting the UCC amount from the Carrying value, you always get the right ending DIT/FIT liability or asset and the right sign! For example, if the warranty liability is (50,000) where the parentheses mean a credit, then 0 UCC - (50,000) warranty liability results in a 50,000 DR balance for the warranty DIT/FIT (that's because 0 minus a negative results in a positive). This should make sense since the future deductibility of the warranty liability for tax purposes represents an DIT asset! When adjusting for the difference with the prior year ending value, you end up with the adjustment for the year and Bob's your uncle. If you try to duplicate this method with examples in the textbook you use for your course it should work out nicely. Hope this helps. Mark
@danieltineoc
8 ай бұрын
@@The_Business_Doctor it makes sense now, it is much easier and practical to understand. The textbook does not explain this way and it is confusing. Too many steps and different approaches to solve an exercise, I prefer one easy method like this to solve all the problems. Thanks again :)
@user-uh4pb1qq1o
2 жыл бұрын
Thank you for your video, very useful. I got question on Warranty 2020 beginning balance. Where did you take it from problem data?
@The_Business_Doctor
2 жыл бұрын
Hi there. If you download the problem data via the link in the video description, the very last item on page 1 shows the warranty liability opening balance to be $20,000. Hope this helps. Mark
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