deferred income tax

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 ?
25 per share, for the remeasurement of ALLETE's deferred income tax assets and liabilities resulting from the Tax Cuts and Jobs Act (TCJA) that was enacted on December 22, 2017.
5 million attributable to the changes in the carrying value of deferred income tax items was partially offset by a $769,000 reduction in current-year income tax expense attributable to the noted reduction in the Company's income tax rate.
9B, due to revaluation of deferred income tax balances.
5% to USD162,306 from USD327,734; the 2016 amount includes a USD270,000 non-cash deferred income tax expense (with a corresponding decrease to CCOM's deferred tax asset).
The first item the board is proposing is elimination of the exception in ASC Section 740-10-25, Recognition, that prohibits recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party.
The first item the board is proposing is elimination of the exception in ASC Subtopic 740-10, Recognition, that prohibits recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party.
Excluding transaction costs associated with the acquisition of Virtek Communication and a change to the deferred income tax valuation allowance, quarterly adjusted net income was USD1.
5 million benefit from the reversal of the valuation allowance related to deferred income tax assets.
Deferred income tax accounting: Opinions of Canadian accountants.
Had the issue been expected to occur over more than a year, a long-term receivable would have been set up with a corresponding long-term deferred income tax liability account shown.
The second way is to convert a regular IRA or a rollover IRA into a Roth IRA by paying any deferred income tax.
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.