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shilpjain
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Joined: 21 Jun 2007
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Posted: 01 Jul 2009 at 06:53 \| IP Logged

there is an example in beckers where taxable depreciation is more than book depreciation which results in a temporary difference . the J/E entry for which is

Dr Income tax expense Current
Dr Income tax Expense -Deferred
Cr Income Tax Liability
Cr Income Tax Payable

I know income tax expense -current will be a component of income statement . Inc tax liability and Income tax payable will be B/s Liability . But what about Income tax expense Deferred ? where does this appear ? is it also a part of income statement ?
Thanks

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kj_nyc
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Posted: 01 Jul 2009 at 09:16 \| IP Logged

Yes, Income tax Expense -Deferred is part of the income statement. It oftens appears in the following format on the income statement:

Provision for income taxes
      Current     xxx
      Deferred    xxx
                   ________
                   xxxxxxxx

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