Hey guys, I’d like to solidify my understanding of this concept. I’ve been having a bit of trouble getting my head fully wrapped around which items are tax assets and which are tax liabilities. I know it’s the opposite for revenue and expenses. Also, the tax base needs to be lower than the accounting. I think I’m getting confused on the latter part. I’d appreciate any suggestions you may have concerning how you approach those problems. Thanks again!
This is how i remember what is a DTA and what is a DTL For Assets: TB > CV DTA TB < CB DTL For Liabilities: TB > CV DTL TB < CV DTA i just write that out whenever I come to a deferred tax question.
Thanks. I’ll try to incorporate that.