Deferred Tax Liabilities and Assets
Not what you're looking for?
The amount of income taxes due to the government for a period of time is rarely the amount reported on the income statement for that period as income tax expense.
a. Explain the objectives of accounting for income taxes in general purpose financial statements.
b. Explain the basic principles that are applied in accounting for income taxes at the date of the financial statements to meet the objectives discussed in (a).
c. List the steps in the annual computation of deferred tax liabilities and assets.
Purchase this Solution
Solution Summary
Deferred tax liabilities and assets are analyzed. The objectives of accounting for income taxes in general purpose financial statements are examined.
Solution Preview
a. Explain the objectives of accounting for income taxes in general purpose financial statements.
The objectives of accounting for income taxes are to recognize (a) the amount of taxes
payable or refundable for the current year and (b) deferred tax liabilities and assets for the future
tax consequences of events that have been recognized in an enterprise's financial statements or
tax returns.
b. Explain the basic principles that are applied in accounting for income taxes at the date of the financial statements to meet the objectives discussed in (a).
The following basic principles are applied in accounting for income taxes at the date ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.