[mitchdp2]

I had a question relating to AOCI, as the becker FAR course was not quite clear on it:

Everything that goes into OCI is reported net of tax, but when we did journal entries for unrealized gains/losses on AFS securities, we did not book the entry net of tax (DR the investment, CR OCI for the full amount of the gain). When it came time to amortize the various pension-related OCI accounts, we booked them into OCI for the gross amount, but they then also told us to book a deferred tax asset along with that (DR Deferred tax asset, CR Deferred tax benefit-OCI for an OCI loss)

So my question is, do we always need to book that related tax entry for every type of OCI gain/loss? They failed to mention it any other time and I am assuming that is the case, but want to be positive.

Thanks for the help!

[marqzho]

yes, unrealized gain/loss for AFS is reported in OCI net of tax and yes it creates deferred tax asset /liability 🙂

REG 90
FAR 95
AUD 98
BEC 84

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