- Joined
- Mar 30, 2015
- Messages
- 1
- Reaction score
- 0
- Country
For this question, I will refer the following 10-K filing (used as an example in the CFA level I curriculum): http://files.shareholder.com/downloads/ABEA-45YXOQ/0x0xS1104659-06-72331/723125/filing.pdf. I have also uploaded it.
What is happening on p. 68 (p. 72 PDF) with respect to the deferred tax valuation allowance? Could you please explain the "Charged/(Credited) to Costs and Expenses" and "Deductions/Write-Offs" columns and how they generally impact allowances, preferably in terms of debits and credits?
Also, on the first table on p. 53 (p. 56 PDF) of the same document, what is the split between current and deferred income tax (provision)/benefit? I understand what DTAs and DTLs are, but not what a deferred tax benefit or provision is, nor what a current tax benefit or provision is. Could someone please make sense of that table and the purpose it serves? I am extremely confused about this.
Also, in broad terms, how would you go about modeling a company's cash and book taxes? Could the second table on p. 53 (p. 56 PDF) be useful for modeling a company's taxes (say, for the purpose of a DCF)?
Thank you very much, your help is greatly appreciated. I assure you I have already spent nearly 10 hours trying to find the answers to these questions.
What is happening on p. 68 (p. 72 PDF) with respect to the deferred tax valuation allowance? Could you please explain the "Charged/(Credited) to Costs and Expenses" and "Deductions/Write-Offs" columns and how they generally impact allowances, preferably in terms of debits and credits?
Also, on the first table on p. 53 (p. 56 PDF) of the same document, what is the split between current and deferred income tax (provision)/benefit? I understand what DTAs and DTLs are, but not what a deferred tax benefit or provision is, nor what a current tax benefit or provision is. Could someone please make sense of that table and the purpose it serves? I am extremely confused about this.
Also, in broad terms, how would you go about modeling a company's cash and book taxes? Could the second table on p. 53 (p. 56 PDF) be useful for modeling a company's taxes (say, for the purpose of a DCF)?
Thank you very much, your help is greatly appreciated. I assure you I have already spent nearly 10 hours trying to find the answers to these questions.