Upon completion, Innovation paid USD900,000 and has withheld the remainder to settle a deferred liability
assumed before closing.
Gartner analysts said one way to characterize this backlog of deferred liability
is to see it as a debt incurred in previous years that will need to be paid off at some time.
The proceeds will be used to settle the Scarborough Vendors Group deferred liability
If the impairment write-down reduces the book basis of tax deductible goodwill below the tax basis, the entire deferred liability
would be reversed and a deferred tax asset would be recognized, subject to valuation allowance considerations.
ANM previously submitted recommendations on topics such as universal mail delivery, the postal monopoly, the deferred liability
crisis, controlling costs, adjustments in service, competition with the private sector, and USPS governance and oversight.
Since the deferred liability
needs to be $5,010, a credit of $3,510 is needed.
Under Statement 96, a deferred tax asset can be recognized only for the tax benefit of net deductible amounts that can be realized by loss carryback from future years to reduce (1) a current deferred liability
and (2) taxes paid in the current or prior years.
The $450 difference in the first year represents a deferred liability
on the balance sheet.
losses allowed a 10-year carryback period are amounts allowable as a deduction, other than those under Sec.
A net deferred liability
does not result from the reversal schedule above so, in summary, there should not be any deferred tax asset or liability recorded at the end of 1991.
The tax rate used to measure a deferred liability
or asset may vary, depending upon when the difference is expected to reverse.