What are some categories of deferred tax assets on the 10k

Solutions

Expert Solution

Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years.

A deferred tax asset originates when an expense is recognized under GAAP and has not yet been recognized for tax purposes, or when revenue is recognized for tax purposes and has not yet been recognized under GAAP. The deferred tax asset will reverse when the expense, already recognized under GAAP, is finally recognized for tax purposes, or when revenue, already recognized for tax purposes, is finally recognized under GAAP.

For example, GAAP rules require that warranty costs be estimated and expensed in the same period the good under warranty is sold and the revenue is recognized. Under tax rules, warranty costs are deductible only when incurred, and may not be estimated and deducted in advance. This will mean that for any given sale, warranty expense under GAAP rules will be recognized before it is recognized for tax purposes.

Some of the categories of deferred tax asset

Deferred tax assets:

Depriciation (Straight Line V/s MACRS)

Allowance for credit losses

Restructure/Revaluation reserves

Incentive compensation

Others

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Is it possible that deferred tax assets greater than deferred tax liabilities? In that case, what...

Is it possible that deferred tax assets greater than deferred tax liabilities? In that case, what will be the treatment for the net amount when they offset against each other?

4. Which of the following is true with respect to deferred tax assets and deferred tax...

4. Which of the following is true with respect to deferred tax assets and deferred tax liabilities a. A permanent difference is always recorded as a deferred tax asset b. A valuation allowance is appropriate only when it is more likely than not that deferred tax asset will not be recognized c. All deferred tax assets and deferred tax liabilities are reported as noncurrent in the balance sheet d. A net operating loss gives rise to a deferred tax liability

a.discuss the criteria for recognizing deferred tax assets and deferred tax liabilities under the provisions of...

a.discuss the criteria for recognizing deferred tax assets and deferred tax liabilities under the provisions of fasb asc 740 b. compare and contrast the asset-liability method and the deferred method

Contrast deferred tax liabilities and deferred tax assets. Give examples of each. Also respond to another...

Contrast deferred tax liabilities and deferred tax assets. Give examples of each. Also respond to another student's post. Write two to three large paragraphs

What is the difference between a deferred tax asset and a deferred tax liability? Explain the...

What is the difference between a deferred tax asset and a deferred tax liability? Explain the difference between a permanent difference and a timing (or temporary) difference as related to tax and financial accounting, and how those differences relate to deferred tax assets and deferred tax liabilities

What is the impact on deferred tax asset and deferred tax liability if a company records...

What is the impact on deferred tax asset and deferred tax liability if a company records accelerated depreciation for tax purposes and straight-line depreciation for book purposes?

why deferred tax assets/liabilities are reported in the balance sheet??

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three...

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three paragraphs, support one of the positions presented below. You should use references to reference material, as necessary. In 3 paragraphs Position: Present arguments against discounting deferred tax liabilities.

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three...

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three paragraphs, support the position presented below. You should use references to reference material, as necessary. Position: Present arguments against discounting deferred tax liabilities.

which of the following statements concerning the classification of deferred tax assets and liabilities is true

Subjects