General Question/Exercise 16-17 Deferred Tax Classification The company has the following balances in its deferred tax...

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Answer 1

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Previously we used to disclose Deferred tax Asset/Liability-Current Asset/Liability or Deferred tax asset/Liability -Non Current Asset/Liablity.

But Now as per FASB new rule We need to disclose the net figure under Non Current Asset/Liablity

In the given case Total Deferred tax Asset= 44,000 (25600+18400)

Total Deferred tax Liability= 32,000 (10000+12000)

So no we need to disclose only the net amount 12,000 under Non Current (Deffered Tax Asset) as per FASB 2017 new rules

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