Question

How are deferred taxes recorded on the balance sheet?

	a.	As stockholders’ equity.
	b.	As current or noncurrent assets or liabilities.
	c.	As noncurrent assets or noncurrent liabilities.
	d.	As current or noncurrent liabilities.

Answer 1

As per FASB issued accounting standard "Income taxes" update 2015-17 all deferred tax assets/liabilities in balance sheet will be presented in Non current assets/liabilities.

Deferred tax means tax calculated on timing difference of a pool of assets/liability. so due to complexity of calculation for finding of current & Non current amounts FASB decided to shown deferred tax as one Non current amount.

So option (c) As Non current assets or non current liabilities.