I’m building a model of a company called Avigilon (TSX. AVO) for practice and I’m having a hard time projecting out deferred taxes for each quarter (4q2015 onwards) going out to 2017. What is usually the industry’s accepted methodology to tackle DTA/DTLs? I understand their concepts, and had no problems on the exams, but the real world presents so many different questions. For example, AVO took on a few deferred taxes through accquisitions of other companies. How would you go about tackling these? Any help or pointers are appreciated.
AVO’s investor relations can be found here: http://ir.avigilon.com/Investor-Relations/Financial-Reports/
Attached 2 screen caps of 2014 10k dealing with DTs
