Changes

'''Deferred Taxes''' are [[tax]]es that may appear on a company’s [[balance sheet]] as either an [[asset]] or a [[liability]].

'''Deferred Taxes''' are [[tax]]es that may appear on a company’s [[balance sheet]] as either an [[asset]] or a [[liability]].

They arise due to timing differences in the Taxable Income of a [[corporation]] vs. its accounting income under Generally Accepted Accounting Principles (GAAP).

They arise due to timing differences in the [[taxable income]] of a [[corporation]] vs. its accounting income under Generally Accepted Accounting Principles (GAAP).

GAAP requires the recognition of deferred taxes to provide a proper matching to total tax expense with the accounting income for the year.  A major reason for deferred taxes to arise is the difference between depreciation for accounting purposes and tax depreciation.

GAAP requires the recognition of deferred taxes to provide a proper matching to total tax expense with the accounting income for the year.  A major reason for deferred taxes to arise is the difference between depreciation for accounting purposes and tax depreciation.