Inmuebles por impuesto sobre la renta diferido Deferred income tax long term assets

Creator:	Richard Cadena
Language pair:	Spanish to English
Discipline:	-
Definition / notes:	Deferred Tax Assets A deferred tax asset is recognized for temporary differences that will result in deductible amounts in future years and for carryforwards. For example, a temporary difference is created between the reported amount and the tax basis of a liability for estimated expenses if, for tax purposes, those estimated expenses are not deductible until a future year. Settlement of that liability will result in tax deductions in future years, and a deferred tax asset is recognized in the current year for the reduction in taxes payable in future years. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Deferred Tax Liabilities A deferred tax liability is recognized for temporary differences that will result in taxable amounts in future years. For example, a temporary difference is created between the reported amount and the tax basis of an installment sale receivable if, for tax purposes, some or all of the gain on the installment sale will be included in the determination of taxable income in future years. Because amounts received upon recovery of that receivable will be taxable, a deferred tax liability is recognized in the current year for the related taxes payable in future years. My comment on the above extracts taken from summaries of FASBs found on the Rutgers University Accounting Website (RAW): All of the foregoing involves various taxes including income tax. When income tax is at issue, the terms would be as follows: a) Deferred Income Tax Assets b) Deferred Income Tax Liability Also take note that all of this takes place in circumstances involving temporary differences.
URL:	http://aicpa.org