Balance sheet adjustments for fair value --Deferred tax should be eliminated if the liability is not reversed how dose deferred tax be adjusted?
If the DTL there on the books - you think, it’s going to get reversed. Keep it as it is If the DTL there on the books - you think, its’ never going to be reversed. remove it from L and add it to E.
well done dinesh!!!
in general if DTL < present value of corresponding future tax liabilities , new DTL = present value and the difference between old DTL and new DTL goes to Retained Earnings.