Deferred tax assets and liabilities typically are classified as current or long term according to when the underlying temporary difference is expected to reverse.

Question

Quizplus · Accepted Answer

Deferred tax assets and liabilities are not classified as current or long term based on the timing of the reversal of the temporary difference. Instead, they are generally classified based on the classification of the underlying asset or liability to which they relate, or for tax loss carryforwards, based on the period over which they are expected to be realized.

Deferred Tax Assets and Liabilities Typically Are Classified as Current