I had the same issue until I started working in tax. But man it is the most difficult concept for me to get in commercial acct for sure.
. Tax bad debt expense is a direct write off. so until a write off occurs nothing is written off.
Gaap estimates based on %'s of 3 different methods and this is guaranteed to be booked in year 1.
an assumption is that this amount booked in year one under gaap will be less than the amount you deduct for taxes next year, you book a DTA based on enacted tax rates.
Royalties received in advance. Taxable when received NOW.. GAAp income when earned in the future. Since you already included it in taxable income the first year you wont be taxed on it when you earn it in the future under GAAP, so you book a DTA in year 1 to recognize the future tax benefit because you wont be taxed.
still working on how to book differences that reverse
BS presentation
classify based on birth under us gaap
net current DTA/DTL or net noncurrent DTL/DTA
IFRS is NONCURRENT only
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