Deferred Tax Asset & Deferred Tax Liability (Financial Statement Reporting On B/S & I/S)

Accounting for deferred tax assets & liabilities reporting on financial statements (balance sheet & income statement), determine deferred tax assets & liabilities (1) Deferred Tax Liability = Future Taxable Amt. x Future Tax Rate, (2) Deferred Tax Asset = Future Deductible Amt. x Future Tax Rate, (A) Income Tax Expense Section On Income Statement: tax expense includes current & deferred amount as a reduction from pretax income to determine net income, (B) Balance Sheet Presentation (Rules): 1-If temporary difference caused by current asset or current liability, then deferred tax account is current: Current Tax Liability ... $XX, Current Tax Asset ..... ( XX) equals Net Current Amount .. $XX (Reported), 2-If temporary difference caused by non-current asset or non-current liability, the deferred tax account is non-current: Non-current Tax Liability ... $XX, Non-current Tax Asset ...... (XX) equals Net Non-current Amount .. $XX (Reported), detailed accounting by Allen Mursau