Deferred Income Tax

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Deferred Income Tax

On a balance sheet, a tax that a company will owe on its income, but that has not yet been assessed. Because of differences between tax regulations and the Generally Accepted Accounting Principles, income may be recognized on a balance sheet for accounting purposes, but not for tax purposes. However, that income will eventually be recognized for tax purposes and income tax will then be assessed. This tax is called deferred income tax, and is recorded as a liability on the balance sheet.

deferred income tax

A liability created by income recognized for accounting purposes but not for tax purposes. The liability recognizes future taxes due when earned income is later reported for tax purposes. Use of accelerated depreciation for reporting to the Internal Revenue Service and straight-line depreciation for reporting to stockholders is one of the major reasons a firm includes deferred income taxes as a liability on its balance sheet.

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individual retirement account IRA Nonqualifying Annuity Tax-Free Income Tax-Sheltered Income Wraparound Annuity			While the standardization of recording of the impairment in value of fixed assets should increase the comparability of financial reporting, it may also bring about a significant, decrease in the amount of reported deferred income tax liabilities. Finally a reduction in deferred income taxes? by Oxner, Thomas H.; Bechtel, Terry; Culpepper, Robert C. / The National Public Accountant The reason for this reporting difference is that in the fourth quarter of 2005, the Company recorded deferred income tax assets to reflect its expected future use of net operating loss carry forwards. Marlton Technologies, Inc. Announces Third Quarter 2006 Results by Business Wire NYSE:DYN) --Restatements related to previously disclosed goodwill impairment charge for Illinois Power and deferred income tax accounts --Restated periods to include fiscal year ended 2003 and first and second quarters of 2004 --Adjustments will not impact the company's cash and liquidity positions or previously announced 2004 guidance estimates --Illinois Power sale remains on schedule to close before the end of 2004 Dynegy Inc. Dynegy to File Amended Financial Statements by Business Wire			Defensive Acquisition Defensive Buy Defensive Investment Strategy Defensive Securities Defensive Security Defensive Stock Deferment Period Deferred Account Deferred Acquisition Costs Deferred Annuities Deferred Annuity Deferred Call Deferred Call Period Deferred Charge deferred charges deferred commission Deferred Compensation deferred contracts Deferred Credit Deferred Dividend Deferred Equity deferred exchange Deferred Futures deferred gain deferred income Deferred Income Tax Deferred Interest Deferred Interest Bond Deferred Liability deferred maintenance Deferred Nominal Life Annuity Deferred Payment Annuity Deferred Payment Option deferred payments Deferred Premium Option Deferred Profit Sharing Plan Deferred Sales Charge Deferred strike option Deferred Tax Expense Deferred-Interest Bond deficiency Deficiency Agreement Deficiency Dividend deficiency judgment Deficiency Letter Deficit Deficit comercial Deficit de recursos Deficit estructural Deficit estrutural deficit financing			deferred credit Deferred Credits deferred data item Deferred Delivery Deferred Deposit Loan Act deferred diagnosis Deferred Discrepancy Deferred Dividend Deferred Dividend Insurance Deferred Dividends Deferred Enforced Departure deferred entry Deferred Entry of Judgment Deferred Equities Deferred equity deferred exchange Deferred Expenditures Deferred expense Deferred expense Deferred expense Deferred Financing Costs Deferred futures Deferred Gain Deferred gratification deferred grazing deferred grazing Deferred income Deferred Income Tax Deferred Income Tax Liabilities Deferred Income Tax Liability Deferred Income Tax Liability Deferred Income Taxes Deferred Interest Deferred interest bond Deferred Interest Bonds Deferred Interest Obligation Deferred Item List Deferred Liabilities deferred liability Deferred Life Annuity Deferred maintenance Deferred maintenance Deferred maintenance Deferred maintenance Deferred Maintenance And Repair Deferred Maintenance Item Deferred Maintenance List Deferred Mode Image Processing deferred mount Deferred Nominal Life Annuities Deferred nominal life annuity Deferred Non-Recurring Charges deferred payment deferred payment Deferred Payment Annuities Deferred Payment Annuities Deferred payment annuity Deferred payment annuity

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