DTA-DTL doubt

CFA Level I
#1

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

#2

I don’t think DTA and DTL can coexist in the balance sheet.

#3

I think they can, meaning they are kept separate.

#4

i think they are netted on the BS and reported seperatly in footnotes

#5

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.

#6

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…

#7

So you mean you can’t have a current DTL and a current DTA together (same for noncurrent). Is that right?

#8

Correct, you must net all of the currents for a single amount and all of the noncurrents for a single amount.

#9

That makes a lot of sense. Thanks