Balance Sheet Classification And The Valuation Of Deferred Taxes
Balance sheet classification, Deferred taxes, Investors
Research in Accounting Regulation
The Financial Accounting Standards Board recently issued Accounting Standards Update 2015–17, which will require firms to classify all deferred tax assets and liabilities as noncurrent in classified balance sheets instead of separating them into current and noncurrent amounts. This change is designed to simplify the reporting of deferred taxes and align with International Financial Reporting Standards. This study conducts empirical analyses on a broad cross-section of publicly traded U.S. firms in order to examine the stock market's valuation of current and noncurrent deferred tax assets and liabilities. The results suggest that classifying all deferred taxes as noncurrent may adversely affect the usefulness of financial statements for equity investors.
Department of Accounting
Original Publication Date
DOI of published version
UNI ScholarWorks, Rod Library, University of Northern Iowa
Bauman, Mark P. and Shaw, Kenneth W., "Balance Sheet Classification And The Valuation Of Deferred Taxes" (2016). Faculty Publications. 1014.