Financial Statement Presentation and Disclosure

Reporting Deferred Taxes

Under U.S. GAAP, all deferred tax assets (DTAs) and deferred tax liabilities (DTLs) are classified as noncurrent on the balance sheet. Within a single tax-paying component and tax jurisdiction, DTAs and DTLs are netted and presented as a single noncurrent amount. Companies must also disclose the major components of deferred taxes, valuation allowances, effective tax rate reconciliations, and significant tax uncertainties.

• Noncurrent deferred tax assets.
• Noncurrent deferred tax liabilities.
• Valuation allowance.
• Effective tax rate reconciliation.
• Significant temporary differences.