If a company has 100 as DTL and 50 as DTA, is it wrong to say it has net DTL of 50? What I mean is a) do dtl and dta have to be netted or b)reported separately thanks
I don’t think DTA and DTL can coexist in the balance sheet.
I think they can, meaning they are kept separate.
i think they are netted on the BS and reported seperatly in footnotes
Just happened to be reading through this section in the Secret Sauce this morning. Here is what they say: They are not netted; DTA and DTL can be on the balance sheet simultaneously and separately.
You must classify the DTLs and DTAs as current or noncurrent. Then determine the current DTA/DTL by netting them. Do the same for noncurrent DTA/DTL. So a balance sheet can have a current DTA and a noncurrent DTL. or current DTL and a noncurrent DTL etc…
So you mean you can’t have a current DTL and a current DTA together (same for noncurrent). Is that right?
Correct, you must net all of the currents for a single amount and all of the noncurrents for a single amount.
That makes a lot of sense. Thanks