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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On May 11, 2018, Ormat disclosed that the Company would delay the filing of its Quarterly Report for the period ended March 31, 2018, stating that "management has identified an error in the Company's financial statement presentation of deferred income tax assets and deferred income tax liabilities that affects the Company's balance sheets in previous reporting periods." Ormat further disclosed that "the Company is evaluating the impact of this error on its consolidated financial statements and the extent to which the Company's annual and quarterly consolidated financial statements filed in previous periods require revision or amendment." On this news, Ormat's share price fell $3.42, or 6.09%, to close at $52.77 on May 14, 2018.
Additionally, the Company netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions that are not permitted to be netted pursuant to United States generally accepted accounting principles.
The final disposal consideration of EUR 14m is equal to Sitia Bay's Net Asset Value after Deferred Income Tax Liabilities included in DCI's financial statements as at 30 June 2017.
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 7.3% before deferred income tax liabilities, from December 31, 2013.
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. One of the major temporary differences for most companies is the difference between the book value of fixed assets for accounting purposes and for tax purposes.
The temporary differences and deferred income tax liabilities for the life of the asset subsequent to the impairment are presented in Table 4.
The disposal consideration of EUR 4.1m 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 $16.8B, due primarily to the re-measurement of U.S.