Rishit JainBeginner
Can you highlight the meaning and purpose of a deferred tax liability?
Can you highlight the meaning and purpose of a deferred tax liability?
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1.The purpose of recognizing a deferred tax liability is to ensure that a company accurately reflects its future tax obligations in its financial statements.
2. By accounting for deferred tax liabilities, a company ensures that it properly matches its tax expenses with the related revenues and expenses, providing a more accurate picture of its financial position and performance to investors and stakeholders.