Companies classify the balances in the deferred tax accounts on the statement of financial position as non-current assets or non-current liabilities.

Question

Quizplus · Accepted Answer

Deferred tax balances are typically classified as non-current because they relate to future tax effects of temporary differences that are expected to reverse in future periods beyond the next 12 months.

Companies Classify the Balances in the Deferred Tax Accounts on the Statement