Jdot514 wrote: thanks for the info.  I'm not sure what the problem was, but I was able to download it on my brother's computer and save it to a usb drive for now...I'll worry about computer issues after the cpa exam is over!  thanks again :)

You're welcome.

Ok guys, I just finished studying pensions, and I have a question I need your help with.  (By the way, it was not nearly as bad as I was making it out to be).

I am confused about when to record a deferred tax asset/tax benefit vs when to record a deferred tax liability/tax expense.  Does anyone have some basic, general rule I can memorize for this? (ie when x and y occur, it's a DTA; when x occurs, it's a DTL).

I know there are a ton of detailed examples in the book, but they are very complicated and I don't have the time to sift through them and figure out the rules.  I would really appreciate if someone could just briefly tell me what I need to know about DTA/DTLs related to pensions. 

This is what I "memorize"

Temporary Differences creates deferred taxes, Permanent does not.

Defered Income Tax Expense= Current Income Tax Expense +(Changes in DTA +  Chanes in DTL)

TAX INCOME > F/S Income = DTL  ---  TAX < F/S INCOME=DTA

THEREFORE;

Income in F/S first= DTL (future Tax Liability Later)

Expenses in F/S first= DTA (Future Savings later)

Income in Tax first=DTA (like prepaid tax benefit)

Expenses in Tax first=DTL (future tax liability later)

When using several temp diff. use the net and always use the enacted tax rate for the year when the diff. will reverse.

When you have a DTA if you think you will not use it in the future you need a valuation account for the part that more likely than not you will lose.

Summary: if you take a (deduction) NOW more expenses in your TAX; you will have to pay it later DTL. If you pay taxes for an income NOW in your TAX you will deduct it later DTA.  Viceverse for F/S Income.

I hope this helps!