Sign up  |  Log in

Deferred tax assets and liabilities v.s Cash Flow


When we use indirect method to adjust net income for operating cash flow, can we net deferred tax assets against deferred tax liabilities, and record an one item cash flow on the CF statement?

I think since assets and liabilities are separate, it would not be appropriate to do so. Thanks.

The best just got better. Schweser's upgraded content and redesigned study platform are exactly what you need to pass the Level I exam. Save 10% when you preorder a Premium Package for a limited time.

It’s not common to do so, but there’s no reason you can’t.

It won’t matter for the Level I CFA exam, however.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams