The results indicate that loss-making firms disclose significantly higher excess net deferred tax expenses
, and that these excesses increase with losses.
The increase in income taxes was due to the company recording deferred tax expenses
, to increase the deferred tax asset valuation allowance to fully offset its deferred tax asset balance, at 31 December 2013.
Net income attributable to common stockholders of USD12.2m and USD37.6m, or USD1.50 and USD4.66 per diluted common share for the fourth quarter and full year respectively, included incremental net non-cash deferred tax expenses
of USD1.9m and USD2.6m, or USD0.23 and USD0.32 per diluted share for the respective periods, primarily related to a revision of the company's estimated blended state tax rate.
2--Deferred tax's influence on the company's income during 2008-2010 Method of Curent tax Deferred tax Explanation (lei) (lei) Year 2008 Accounting result 307,29 307,297 Current tax expenses -47,943 47,943 Deferred tax expenses 0 3,200 Net result 259,354 256,154 Year 2009 Accounting result 1,937,195 1,937,195 Current tax expenses -260,744 -260,744 Deferred tax expenses 0 1,600 Net result 1,676,451 1,678,051 Year 2010 Accounting result 654,153 654,153 Current tax expenses -208,646 -208,646 Deferred tax expenses 0 1,600 Net result -445,507 -447,107
Thus we consider that the company's result will reflect the expense with the current income tax as well as the deferred tax expense, which will result in the provision of financial statements as close as possible to reality.
He also pointed out that during the tax exemption period, deferred tax accounting issues also arise and at times companies incorrectly do not account for the deferred tax expenses
during the tax holiday period.
As a result of the ruling Kinnevik's first quarter earnings will be charged with SEK89m in deferred tax expenses
(25) The overstatements of pretax book income and the current and deferred tax expenses are calculated using the originally filed and restated numbers gathered by hand.
This alternative results in no current payment of taxes to the government on overstated earnings but will cause the firm to recognize additional deferred tax expense and a corresponding additional amount of deferred tax liability.
Our results indicate that loss-making firms disclose a significantly higher excess of net deferred tax expenses
in the year of the loss, and that this excess increases with increasing loss.
(3) We show in this paper that the value of the DTL is not equal to the present value of future deferred tax expenses
. Third, the U.K.
The improvement in net loss for the third quarter of 2011 is mainly attributed to the decrease in the Bank's deferred tax expenses
, while the provision to the allowance for loan losses totalled USD275,000, higher than the provision to the allowance for loan losses of USD195,000 in 2010.