From an economic standpoint, it appears reasonable that deferred tax liabilities should be shown at their present value.

Question

Quizplus · Accepted Answer

Deferred tax liabilities represent the taxes that a company will owe in the future as a result of temporary differences in accounting treatment. These liabilities should be shown at their present value, reflecting the fact that they will not need to be paid until some point in the future. This is consistent with the time value of money principle in economics.

From an Economic Standpoint, It Appears Reasonable That Deferred Tax