An individual deferred tax asset or liability is classified as current or noncurrent based on the classification of the related asset/liability for financial reporting purposes.

Question

Quizplus · Accepted Answer

This statement is true. The classification of an individual deferred tax asset or liability as current or noncurrent is dependent on the financial reporting classification of the related asset or liability. This is because the timing of the reversal of the deferred tax asset or liability is linked to the timing of the reversal of the related asset or liability for financial reporting purposes.

An Individual Deferred Tax Asset or Liability Is Classified as Current