Analysts can use the deferred tax portion of the income tax note to the financial statements to undo differences in financial reporting choices across firms and thereby

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Analysts can use the deferred tax portion of the income tax note to adjust for differences in financial reporting choices across firms, which can improve the comparability of financial statements between different companies. In particular, deferred tax assets and liabilities reflect temporary differences between book and tax accounting that can be used to normalize financial metrics like net income, earnings per share, and return on assets.

Analysts Can Use the Deferred Tax Portion of the Income