This Financial Reporting Insights is intended to be used as a resource in understanding and analyzing the accounting for current taxes payable or refundable, deferred tax assets (DTAs), and deferred tax liabilities (DTLs), which form the basis for the income tax amounts recorded on an entity’s financial statements. The amounts recorded in the income statement are generally the differences between the income tax amounts on the current year and prior year balance sheets. This publication also discusses the effective tax rate reconciliation disclosure requirements.
This publication does not address every aspect of accounting for income taxes and should therefore be read in conjunction with the FASB Accounting Standards Codification (ASC) 740, Income Taxes.
