Question

How do you determine the federal current and federal deferred portions of tax expense on a 10-k

Answer 1

As we know that 10K report of a company is consisted of Balance Sheet, Income Statement, Statement of Cash flows, Statement of stockholders’ equity etc.

Federal current and federal deferred portion of tax can be identified from followings;

Income Statement or Consolidated Statements of Operations have an item which is known as Provision for income taxes. So this head provision for income taxes includes federal current taxes and federal deferred taxes. So with the help of Income Statement we can know both items but sometime we see that income statement only shows provision for income taxes thus for getting actual information about Federal current and federal deferred portion of taxes we need to see Notes to the financial statement also.

Apart from this we know that deferred tax liabilties & deferred tax assets also can be seen in the balance sheet under other current liabilities or other current assets heading because deferred tax is a current liability or a current asset that is why we can know amount of deferred tax liability or deferred tax assets under other current liability or other current assets head of the balance sheet.

Statement of cash flows also gives information about the federal current and federal deferred portion of tax. Thus we can say that statement of cash flows also helps in finding out these figures.