Deferred Tax Asset
/dɪˌfɜːrd tæk ˈæsɛt/
Definitions
- (n.) An accounting concept representing the amount of income taxes recoverable in future periods related to deductible temporary differences and carryforwards.
The company recognized a deferred tax asset due to its net operating losses carried forward.
Forms
- deferred tax asset
- deferred tax assets
Related terms
See also
Commentary
Deferred tax assets reflect timing differences between tax and accounting rules and require careful assessment of future taxable profits for realization.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.