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Is a deferred tax asset current or non-current? Deferred tax assets are recorded as non-current, or long-term, on balance sheets since they will be realized in the future. Deferred tax liabilities ...
Deferred tax is a notional asset or liability to reflect corporate income taxation on a basis that is the same or more similar to recognition of profits than the taxation treatment. Deferred tax liabilities can arise as a result of corporate taxation treatment of capital expenditure being more rapid than the accounting depreciation treatment ...
The result is a gap between tax expense computed using income before tax and current tax payable computed using taxable income. This gap is known as deferred tax. If the tax expense exceeds the current tax payable then there is a deferred tax payable; if the current tax payable exceeds the tax expense then there is a deferred tax receivable.
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If you bought a non-current asset for $10,000 and have written off $3,000 for depreciation, the current valuation of that non-current asset is $7,000. Examples of Non-Current Assets in Major Companies
Net operating profit less adjusted taxes (NOPLAT) refers to after-tax EBIT adjusted for deferred taxes, or NOPAT + net increase in deferred taxes. [1] It represents the profits generated from a company's core operations after subtracting the income taxes related to the core operations and adding back in taxes that the company had overpaid during the accounting period.
Cash-value life insurance covers the policyholder's entire life and has tax-deferred savings, making it comparable to other retirement plans. Some of the premium paid every month goes to this ...
For the first five years, it has no taxable profit and pays no gains tax. For the last five years, the company has a gain of $200, and pays $40 per year in tax, for a total of $200. To compare these two (simplified) cases, the company pays $200 in taxes in both instances. In the second case, it has deferred taxes to a much later period.