Balance Sheet Classification
Classified B/S-deferred tax assets and liabilities are classified by classification of the related asset or liability for financial reporting.
- If the deferred tax asset or liability is not related to a particular account (e.g., temporary differences arising out of use of %- completion for long-term construction contracts on the books but the completed contract method for tax purposes) then they should be classified by their expected reversal dates.
- Note: All current deferred tax liabilities and assets are offset and presented as a single amount.
- Note: All noncurrent deferred tax liabilities and assets are offset and presented as a single amount