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 ?
0291, respectively, primarily as a result of Deferred income taxes generated by the appreciation of the US Dollar during the period, which negatively impacted 2Q13 Net income.
Excluding the income tax benefit from the change in deferred income taxes valuation allowance, quarterly adjusted net income was approximately $1.
Roy Dyce, President and CEO of PNG said "While this decision will help PNG to deal with its near term cash flow and liquidity problems, we are disappointed that the BCUC did not approve our request to accelerate the recovery of depreciation of our investment in facilities specifically built to serve Methanex and the unbooked deferred income taxes from Methanex.
Additionally, CMS announced that it will record an impairment charge of $19 million, net of deferred income taxes, in the fourth quarter of 2004, related to the sale of GVK Industries Ltd.
The restatement primarily resulted from adjustments related to the purchase price allocation for acquisitions completed prior to 2001 and deferred income taxes.
By including deferred income taxes in the capital base, the provinces display a consistency, inasmuch as they are following a taxable capital concept.
In fact, FAS 142 refers to paragraph 30 of FAS 109: "Deferred income taxes are not recognized for any portion of goodwill for which amortization is not deductible for income tax purposes," and "the recognition of deferred income taxes is required when amortization of goodwill is deductible for tax purposes.
deferred income taxes included in the company's consolidated income tax
121 might decrease deferred income taxes, the following simplified example is used:
To simplify the presentation of deferred income taxes, FASB is proposing that for such entities, deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position.
Prepaid expenses, net deferred income taxes and other current assets
The Company was able to reverse $299,185 of its valuation allowance for deferred income taxes due to continued improvements in the Company's operations and the forecasted revenue and taxable income.