[Anonymous]

Quick question, sorry if it’s a stupid question…

Does deferred asset/liability ever affect I/S? I thought Tim mentioned in one of the lectures that deferred portions only affect B/S, and not the I/S. Is that correct? This is probably standard accounting concept, but I’m confused. Any help would be appreciated!

Thanks:!)

[Nbkna2c]

Look up the tax expense formula and it says the sum of (taxable income x enacted rates) + (change in net sum of DTL (minus if DTA) X enacted tax rates). Expenses flow through to the I/S so kinda….hope that helps! I mean generally speaking assets and liability are B/S accounts but it's the relationship with the I/S that needs to be understood.

BEC 78
REG 84
AUD 76
FAR 83

[Author]

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