which one is the outflow that really happened? taxes payable from tax return or tax expene from income statement ? without knowing this, I can never understand which one is defferred tax liability and which one is differred tax asset… someone can explain concisely?
Taxes Payable = Income taxes owed to the gov’t based on current period taxable income per the income tax filing Tax Expense = This is based on the current period’s pretax income reported on the income statement You give Tax Payable to the IRS. You show Tax Expense to the market. If payable>expense, you get a DTA. If payable
tax payable @tax return is the tax money REQUIRED to pay? that’s why if the tax expense @finanial statement is higher, such situaiton is called differed tax liability? is this how we remember this definition?
tax expense = taxes payable + change in DTL - change in DTA
vanessa Wrote: ------------------------------------------------------- > which one is the outflow that really happened? > > taxes payable from tax return or tax expene from > income statement ? > > > without knowing this, I can never understand which > one is defferred tax liability and which one is > differred tax asset… > > someone can explain concisely? thank you thank you thank you.谢谢
supersharpshooter Wrote: ------------------------------------------------------- > tax expense = taxes payable + change in DTL - > change in DTA it should be income tax expense as I read in textbook income tax expense = tax expense?
yes i mean income tax expense
‘income’ won’t appear in any of the test phrasing. It’s always tax expense and tax payable as shooter mentioned.