1. Explain why interperiod tax allocation is necessary.
2. Identify permanent and temporary tax differences.
3. Determine and record tax expense and tax payable.
4. Determine deferred taxes when multiple tax rates or tax-rate changes are involved.
5. Describe when and how a valuation allowance is recorded for a deferred tax asset.
6. Describe how tax expense, deferred tax liabilities, and deferred tax assets are presented in the financial statements.
7. Interpret income tax disclosures and their use in financial analysis.
8. Identify the effects of interperiod tax allocations on cash flow.