what are the major analytical issues associated with deferred tax liabilities?
October 14, 2008
r62na asked:
Also what type of adjustments to deferred tax liabilities do analysts make when examining financial statements?
Also what type of adjustments to deferred tax liabilities do analysts make when examining financial statements?
One Response to “what are the major analytical issues associated with deferred tax liabilities?”
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October 16th, 2008 at 10:58 am
Analytically, the major issue is “can the company afford the taxes when they come due” because they cannot defer the tax indefinately.
Changes in deferred tax over the periods analyzed are added or subtracted to the tax on the current period’s income statement when looking at cash flow measures.