Income Tax Expense Equation net, increase, reported, company, correct

wonderfuldream

From the Reading 37:
"Income tax expense reported on a company's income statement equals taxes payable, plus the net increase in deferred tax assets, less the net increase in deferred tax liabilities."


From the Schwesser notes:
Income Tax Expense = Tax payable + Change in DTL - Change in DTA

Can someone explain which is correct?

johnnyBuz

it might be easier to look at this in debits and credits, liabilities on the credit and assets on the debit side. The bottom equation looks correct.