Financial Statement Presentation

Question 1

How do DTAs and DTLs gets represented on the balance sheet

Answer 1

1. Noncurrent
2. Netted by jurisdicition
3. One-time transition tax (TCJA)
4. Current taxes payable/receivable
5. Current/noncurrent liabilities related to UTPs

Question 2

How is income tax expense shown on the income statement

Answer 2

Income tax expense (or benefit)
Segregated into current and deferred

Question 3

What belongs in the tax footnote

Answer 3

Total of DTA, DTL, Valuation balance and net changes
Extensive detail on all deferred expenses/benefits
All information on credits carryforwards
OCI
ETR reconciliation
UTPs without indirect impacts and the effect of settling all UTPs