Deferred tax accounting adjustments are recorded at what point in time?

Question

Quizplus · Accepted Answer

Deferred tax accounting adjustments are recorded at balance date, which is the end of the financial reporting period. This is because deferred tax liabilities and assets reflect the temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax base, and these differences are only determined at the end of the reporting period. Therefore, the adjustments are made at balance date to reflect the current tax consequences of these temporary differences.

Deferred Tax Accounting Adjustments Are Recorded at What Point in Time