Deferred Taxes

Use these accounts to model taxes on the Balance Sheet:

  • (v2080.00) Current Deferred Tax Asset

  • (v2080.01) Incr. in Curr. Def Tax Asset

  • (v2380.00) Deferred Tax Asset

  • (v2380.01) Incr. in Def. Tax Asset

  • (v2580.00) Current Deferred Tax Liab.

  • (v2580.01) Incr. in Curr. Def. Tax Liab.

  • (v2770.00) Deferred Income Taxes

  • (v2770.01) Incr. in Deferred Inc. Taxes

Changes in the deferred tax accounts generally are due to changes in temporary differences. The proper relationship between these accounts and Temporary Differences (v3120.00) assures proper presentation of the deferred tax position.

Strategic Finance uses Current Deferred Tax Asset (v2080.00), Deferred Tax Asset (v2380.00), Current Deferred Tax Liab (v2580.00), and Deferred Income Taxes (v2770.00) as input accounts. Incr. in Curr. Def Tax Asset (v2080.01), Incr. in Def. Tax Asset (v2380.01), Incr. in Curr. Def. Tax Liab. (v2580.01) and Incr. in Deferred Inc. Taxes (v2770.01) take the current period value in the associated account and subtract the previous period value. If the input accounts are zero, the calculated accounts are zero.

In forecast periods, Strategic Finance calculates the deferred tax provision as a function of temporary differences in that period. Strategic Finance does not default a relationship between the deferred tax accounts on the balance sheet and deferred tax provision on the income statement. To keep the cash flow reports internally consistent, this relationship must be enforced. The best way to enforce it is to make sure this equality holds in all periods:

v1660.00 = v2770.01 + v2580.01 - v2080.01 - v2380.01

Deferred Tax Reconciliation (v4180.00) is calculated using the above equation. On the Direct and Indirect Cash Flow Statements, this account can be accessed by analyzing Non-Operating Income (v4200.00). On the FAS 95 Cash Flow Statement, this account can be accessed by analyzing Non-Operating Sources (FAS 95) (v4520.00).