Seventeen of the identified firms restated their financial statements due to two problems: (1) improper recording of deferred taxes
related to indefinite-lived intangibles acquired in mergers and acquisitions and (2) mishandling of deferred tax assets and liabilities on indefinite-lived intangibles in determining the valuation allowance.
Quickly calculate deferred taxes
by legal entity -- The majority of temporary differences impacting the calculation of current and non-current deferred tax assets and liabilities are automatically sourced from within the solution.
The association between deferred taxes
and common stock risk.
In this situation, a deferred tax liability is established for the difference between the book basis and tax basis of the indefinite-lived intangible asset, and deferred taxes
What Needs to Happen: In order to accurately ascribe deferred taxes
, a CEO must ensure the company's financial department understands statutory and GAAP accounting regulations.
Taking into consideration the temporary differences requires the recognition of deferred taxes
Exploration & Production: The effect of the unfavorable adjustment to deferred taxes
in 1993 to reflect the higher federal tax rate coupled with the favorable deferred tax adjustment recorded in 1992 significantly distorted the results of CNG's exploration and production (E&P) operations.
The objective of the statement is to account for current and deferred taxes
payable because of temporary differences arising between financial statement reporting and tax reporting.
Since there were no differences between financial and tax accounting, there were no deferred taxes
Under Statement 96, deferred taxes
represent the sum of the amounts that would be payable or refundable based on the filing of hypothetical tax returns that include only the future reversals of existing temporary differences by year.
4 million for deferred taxes
on unremitted earnings of foreign subsidiaries.
The measurement of deferred taxes
becomes complicated, however, when the enterprise has both taxable and deductible amounts and/or when current and enacted future tax rates are different.