Prepaid taxes and Current Assets

  • Creator
    Topic
  • December 9, 2017 at 9:33 am #1676083
    star_invention
    Participant

    If trial balance shows prepaid taxes, but no tax expense, why is this prepaid balance not included in current assets?
    (Ninja FAR book, Chapter 2, pg 3)
    Thanks

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  • December 9, 2017 at 10:20 am #1676122
    Anonymous
    Inactive

    I think it would be incorrectly coded to Current Assets and should be expensed in the year end F/S. If it relates to the next year, then it should be part of the DTA/DTL calc.

    December 9, 2017 at 7:58 pm #1676363
    star_invention
    Participant

    Thank you, that makes sense

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