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.
References in periodicals archive ?
1m is equal to the DCI historic investment cost and represents a premium to the Triopetra Net Asset Value after Deferred Income Tax Liabilities included in DCI's financial statements as at 30 June 2017.
VERIZON: In a regulatory filing on Wednesday, Verizon (VZ) said it estimates that the enactment of the Tax Cuts and Jobs Act will result in a one-time reduction in net deferred income tax liabilities of approximately $16.
Entities would be required to apply the proposed balance sheet changes prospectively to all deferred income tax liabilities and assets.
The real estate investment company said its total group net asset value was e1/4648 mln as at March 31, and e1/4561 mln after deferred income tax liabilities, an increase of e1/444 mln or 7.
As a result, its deferred income tax liabilities will be calculated using a different rate.
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.
The temporary differences and deferred income tax liabilities for the life of the asset subsequent to the impairment are presented in Table 4.
The results of the current quarter and year-to-date period were favorably impacted by the reversal of approximately $17 million in long-term and deferred income tax liabilities related to certain tax matters for which the statue of limitations has expired.
34 Diluted earnings 1999 1998 (A) Assets: Cash and cash equivalents $ 43,848 $ 33,382 Accounts receivable, net acquired and other intangible assets, net and other 262,482 238,217 $555,157 $ 493,003 Liabilities and Shareholders Equity: Accounts payable $ 39,513 $ 19,601 Accrued expenses and other payables 55,473 51,662 Accrued income taxes on discontinued operations 15,513 - Current maturities of long-term debt and capital lease 1,924 9,039 112,423 80,302 Long-term debt and capital lease 22,663 49,186 Senior subordinated notes 182,162 182,338 Deferred income tax liabilities 30,390 34,571 Other long-term liabilities 35,767 35,889 270,982 301,984 Shareholders Equity 171,752 110,717 $555,157 $ 493,003 (A) Restated to reflect discontinued operations.
Condensed Consolidated Balance Sheet Data: 6/30/97 12/31/96 Trade accounts receivable, net $ 47,087 $ 51,843 Inventories 67,149 74,328 Prepaid expenses and other assets 2,505 1,980 Deferred income tax assets - current 1,915 1,915 Property, plant and equipment, net 8,953 5,023 Goodwill, net 18,971 18,689 Covenants not to compete, net 390 455 Other assets 2,155 1,948 Total assets $149,125 $156,181 Accounts payable and accrued liabilities $ 17,512 $ 17,198 Income taxes payable 607 1,061 Capital lease obligations 823 1,006 Current portion of long-term debt 60,434 4,250 Long-term debt, net of current portion 9,563 73,421 Deferred income tax liabilities - noncurrent 92 92 Stockholders' equity 60,094 59,153 Total liabilities and stockholders' equity $149,125 $156,181
4 million, or 10 cents per share, were recorded in 1993 related to increased deferred income tax liabilities recorded prior to 1993.