Combining the net deferred tax asset and liability amounts in the current or noncurrent group is one of the few situations in which GAAP allows offsetting assets and liabilities.

Question

Quizplus · Accepted Answer

GAAP allows offsetting of net deferred tax assets and liabilities in the current or noncurrent group if they relate to income taxes levied by the same taxing authority and the company has the intention to settle the net amount. This is known as the "balance sheet offsetting" method.

Combining the Net Deferred Tax Asset and Liability Amounts in the Current