Londonrocks

Yes, DTLs/DTAs are one of the hardest things on the test. Do as many problems as you can find obviously, read the CFAI text & do those problems. Think of a DTA as a prepaid tax, where you are paying "too much" in taxes, therefore in the future you will get to pay less. A DTL is the opposite, where you pay "too little" in taxes, so you will OWE more taxes in the future. When a DTL "reverses" as they call it, it needs to be paid off. If a DTL is not expected to reverse, then it won't need to be paid off, so it can be ignored or treated like equity.