Publications
Publications
- November 2006 (Revised October 2007)
- HBS Case Collection
A Brief Note on Deferred Taxes: An Analysis Perspective
Abstract
Provides an overview of accounting for deferred taxes. The primary objective is to provide external users with a basic understanding of deferred taxes. A simple illustrative example is provided, which is followed by a discussion of several important issues likely to be encountered in the analysis of deferred taxes (e.g., deferred tax assets vs. liabilities, balance sheet classification, permanent differences, statutory vs. effective tax rate, net operating loss carry forwards, and valuation allowances). The discussion of these issues is brief and non-technical. Provides actual deferred tax information from AOL's Form 10-K, where net operating loss carry forwards result in a large deferred tax asset and the accounting for software and deferred subscriber acquisition costs generate a large differed tax liability.
Keywords
Citation
Bradshaw, Mark T. "A Brief Note on Deferred Taxes: An Analysis Perspective." Harvard Business School Background Note 107-047, November 2006. (Revised October 2007.)