taxes payable vs DTL q2 practice problems
In question 2 of the Income Tax practice questions, the text mentions that “the taxes that a company must pay in the immediate future are taxes payable” rather than a DTL. I found this quite confusing - if the company is paying tax in 2009 on income earned in 2008, wouldn’t that imply that the company’s income tax expense (from accounting treatment) was greater that the income tax payable (from tax treatment) in 2008 hence creating a DTL? Is there anything in the text that explains this in further detail? I feel like I may have missed something in the text or am just having a stupid moment.
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