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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First Gen said in a statement it saw higher electricity sales from its natural gas, geothermal and hydro platforms, foreign exchange gains and benefits from deferred income taxes.
It has been specified that US$81 million (P4.3 billion) or 95% better than the earnings in the first semester "due to the higher electricity sales of its natural gas, geothermal and hydro platforms, foreign exchange gains and benefits from deferred income taxes."
The company attributed the growth to the higher electricity sales of its natural gas, geothermal and hydro platforms, as well as forex gains, and lower deferred income taxes.
Of the various resources that can possibly be used, we argue that the amounts of deferred income taxes are one of the most compelling for this purpose, due to two main reasons.
Business changes that affect apportionment factors can change the state tax rate at which balance sheet deferred income taxes can reverse and can result in significant financial statement charges related to a revaluation of deferred income taxes.
As of December 31, 2017, the net deferred income taxes impact was $245M, with a decrease to liabilities and increase to assets, and the cumulative impact on retained earnings was a decrease of $774M...This revision followed the Securities and Exchange Commission Division of Corporation Finance review of our Annual Report on Form 10-K for 2017, which included review of our prior accounting for liability for unasserted Bendix-related asbestos claims.
Deferred income taxes relate to the timing of when the corresponding revenue and/or expenses are reflected in GAAP earnings as compared to income tax returns and must be recorded at the effective tax rate that is expected to apply, based on enacted statutes, when the temporary differences reverse in a future reporting period.
Bailey said the utility needed to know what the depreciation rates would be in order to follow generally accepted accounting principles.<br />Anthony asked about the company's accumulated deferred income taxes that were being refunded, estimated at about $1 billion.
The company is requesting an eight-year amortization of the unprotected deferred income taxes associated with non-Kemper retail and wholesale operations.
The restatement is expected to impact the income tax (provision) benefit line item in the Companys statements of operations, with associated impacts to net income and earnings per share and the deferred income taxes line items on its balance sheet.
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.
Net income attributable to Embraer shareholders and earnings per ADS basic totaled negative USD 5.3m and negative USD 0.0291, respectively, primarily as a result of deferred income taxes generated by the appreciation of the US Dollar during the period, which negatively impacted Q2 '13 net income.