- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 9. Analysis of Income Taxes
- Subject 3. Determining the Tax Base of Assets and Liabilities
CFA Practice Question
Deferred income taxes payable are shown on the balance sheet at discounted present value. True or False?
Correct Answer: False
Deferred taxes payable are valued on the balance sheet at the undiscounted, historical amount. The time value of money is ignored.
User Contributed Comments 2
| User | Comment |
|---|---|
| sarath | For the deferred tax payables the time value of money is ignored and they are shown on the balance sheet as HISTORICAL amounts. |
| johntan1979 | Deferred taxes payable = DTL (deferred taxes liabilities) Deferred taxes receivable = DTA |