标题: Income tax expense [打印本页] 作者: wildrose 时间: 2011-7-13 15:21 标题: Income tax expense
Hi, everybody.
This quiz is from CFA curriculum (book 3 - page 418 -3).
"Income tax expense reported on a company's income statement equals taxes payable, plus the net increase in
A. deferred tax assets and deferred tax liabilities.
B. deferred tax assets, less the net increase in deferred tax liabilities.
C. deferred tax liabilities, less the net increase in deferred tax assets."
Their answer is B.
However, I thought the correct one is C, because
Income tax expense = taxes payable + change in DTL - change in DTA.
Could someone explain this to me?作者: kasinkei 时间: 2011-7-13 15:21
TungTran, looks C to me as well.
Errata?
Lets wait for views from others.作者: shootingstar 时间: 2011-7-13 15:21
errata on cfai website
In solution 3 (p. A-18), C is correct. Change asset to liability (2nd line) and liability to
asset (3rd line).
CP作者: kmf229 时间: 2011-7-13 15:21
Right on folks.
C is correct. It says so in the errata as well作者: manasib 时间: 2011-7-13 15:21
On page 385 CFAI SS9, It says:
A company's income tax expense or tax benefit in case of a recovery appears on its income statement and is an
aggregate of its income tax payable (or recoverable in case of a tax benefit)
+ any changes in deffered tax assets and liabilities.
With regards to this even B makes sense to me. However this can potentially be wrong as in Errate website said (In solution 3 (p. A-18), C is correct. Change asset to liability (2nd line) and liability to
asset (3rd line))
Problem is how to tacke this type of question in exams作者: sgupta0827 时间: 2011-7-13 15:21
So it is print-error in CFA Curriculum, right?作者: eagles_dare13 时间: 2011-7-13 15:21
