Accounting Mystery Tip

• Current and deferred portions of the income tax expense are disclosures in the financial statements. The Balance Sheet is the approach in which the FASB uses in accounting for DTAs;
• On an income statement, you should report gain on discontinued operations after applying the tax rate;
• It is important to note that a tax base is the original value for tax purposes, then reduced by any amount up to the date of the tax returns;
• A combo of income tax expense determination can include changes in DTA and DTL, changes in VAs for DTA, Income Tax Payable, and Changes in liabilities for uncertain tax positions.