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

Question

Quizplus · Accepted Answer

GAAP permits the offsetting of deferred tax assets and liabilities when a company has a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities are levied by the same taxing authority.

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