Researhes have shown that defereed taxes provide significant information in ratio analysis, earnings conservatism, capital structure, corporate reaction against tax reforms, firm value and stock prices, earnings quality and earnings management.
📌 3 Key Takeaways
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Objective & Hypothesis:Deferred taxes, which result from the temporary differences between the book value and tax base of assets and liabilities, the carryforward of unused tax losses and tax credits, are reported separate from the current tax liabilities due to matching principle.
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Key Findings & Data:Deferred taxes carry information of great significance and should be anlyzed in detail.
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Conclusion & Impact:Researhes have shown that defereed taxes provide significant information in ratio analysis, earnings conservatism, capital structure, corporate reaction against tax reforms, firm value and stock prices, earnings quality and earnings management.
Deferred taxes, which result from the temporary differences between the book value and tax base of assets and liabilities, the carryforward of unused tax losses and tax credits, are reported separate from the current tax liabilities due to matching principle. Deferred taxes carry information of great significance and should be anlyzed in detail. Researhes have shown that defereed taxes provide significant information in ratio analysis, earnings conservatism, capital structure, corporate reaction against tax reforms, firm value and stock prices, earnings quality and earnings management.
ERGİN, N. E., AYANOĞLU, Y. (2015). THE IMPORTANCE OF DEFERRED TAXES FOR FINANCIAL STATEMENT USERS. Gazi İktisat ve İşletme Dergisi, Cilt: 1 - Sayı: 1, 77–104. https://ajindex.com/articles/666705