Peeling away financial reporting issues one layer at a time

Category for Deferred Taxes

More Not to Like about Deferred Taxes: The Foreign Earnings Loophole

A seasoned accountant and regular reader of my blog wrote that, until my last post, he had seen little discussion of the potential to manage the effective tax rate upwards. He has, however, [Read More...]

Of What Use is Deferred Tax Expense to Financial Analysts?

Interperiod tax allocation has been required since the 1950s, soon after Congress permitted tax deductions based on accelerated depreciation of long-lived assets.  History indicates that the accounting standard setters who pushed for [Read More...]

Deferred Taxes and Tax Reform: Is a Big (Fictional) Accounting Gain in the Future?

I read today that Congress is likely to consider corporate tax reforms that would reduce the statutory income tax rate from the current 35% to as little as 15%.  The lower income tax [Read More...]

How Deferred Tax Accounting Blunts Government Incentives to Invest in Renewable Energy

One of the items in my inventory of pet peeves when I first started blogging (six years ago!) was interperiod tax allocation, familiarly known as “deferred tax accounting.”  I’ve always objected to it on [Read More...]