Matches in SemOpenAlex for { <https://semopenalex.org/work/W86357259> ?p ?o ?g. }
Showing items 1 to 87 of
87
with 100 items per page.
- W86357259 abstract "This paper clarifies some of the conflicting arguments about the value relevance of deferred taxes. We address two questions. First, does accounting aggregation hold, or in other words, are deferred tax expense and liability balances valued the same as operating earnings and asset balances, respectively? Second, what accounting method for deferred taxes preserves classical accounting relations, or should deferred taxes be recorded as equity, as debt, or as some combination of these categories? We answer these questions using a model of depreciable assets and cashflow dynamics identical to Feltham and Ohlson (1996). In this setting, we find that aggregation does not hold; rather deferred taxes are valued less than earnings and book value. Deferred taxes add value because they represent the deferral of tax payments, so their value is the net present value of the tax benefits. We interpret this result to mean that the timing of the reversal of temporary differences does matter, consistent with recent empirical work. Our analysis shows that the deferred tax liability, as currently recorded in accordance with US GAAP, overstates the liability. In answer to the second question, we find that the classical accounting relations hold only when deferred taxes are adjusted to their net present value. Further, the extent of this adjustment depends on whether or not the tax benefits are capitalized into the cost of the operating asset. If the benefits are reflected in the assets cost, deferred taxes should be adjusted down based on the ratio of the discount rate over the sum of the tax depreciation and discount rates. Otherwise, the entire balance should be treated as equity." @default.
- W86357259 created "2016-06-24" @default.
- W86357259 creator A5027070024 @default.
- W86357259 creator A5030214181 @default.
- W86357259 creator A5058151934 @default.
- W86357259 date "2002-06-24" @default.
- W86357259 modified "2023-09-27" @default.
- W86357259 title "The Aggregation and Valuation of Deferred Taxes" @default.
- W86357259 hasPublicationYear "2002" @default.
- W86357259 type Work @default.
- W86357259 sameAs 86357259 @default.
- W86357259 citedByCount "5" @default.
- W86357259 crossrefType "posted-content" @default.
- W86357259 hasAuthorship W86357259A5027070024 @default.
- W86357259 hasAuthorship W86357259A5030214181 @default.
- W86357259 hasAuthorship W86357259A5058151934 @default.
- W86357259 hasConcept C100001284 @default.
- W86357259 hasConcept C121955636 @default.
- W86357259 hasConcept C162324750 @default.
- W86357259 hasConcept C167116941 @default.
- W86357259 hasConcept C170802524 @default.
- W86357259 hasConcept C172008318 @default.
- W86357259 hasConcept C175444787 @default.
- W86357259 hasConcept C17744445 @default.
- W86357259 hasConcept C181622380 @default.
- W86357259 hasConcept C186027771 @default.
- W86357259 hasConcept C199539241 @default.
- W86357259 hasConcept C199728807 @default.
- W86357259 hasConcept C202253471 @default.
- W86357259 hasConcept C2777834853 @default.
- W86357259 hasConcept C2778281098 @default.
- W86357259 hasConcept C2781426361 @default.
- W86357259 hasConcept C44750222 @default.
- W86357259 hasConcept C551662922 @default.
- W86357259 hasConcept C556758197 @default.
- W86357259 hasConcept C58202505 @default.
- W86357259 hasConcept C74939039 @default.
- W86357259 hasConcept C95383336 @default.
- W86357259 hasConceptScore W86357259C100001284 @default.
- W86357259 hasConceptScore W86357259C121955636 @default.
- W86357259 hasConceptScore W86357259C162324750 @default.
- W86357259 hasConceptScore W86357259C167116941 @default.
- W86357259 hasConceptScore W86357259C170802524 @default.
- W86357259 hasConceptScore W86357259C172008318 @default.
- W86357259 hasConceptScore W86357259C175444787 @default.
- W86357259 hasConceptScore W86357259C17744445 @default.
- W86357259 hasConceptScore W86357259C181622380 @default.
- W86357259 hasConceptScore W86357259C186027771 @default.
- W86357259 hasConceptScore W86357259C199539241 @default.
- W86357259 hasConceptScore W86357259C199728807 @default.
- W86357259 hasConceptScore W86357259C202253471 @default.
- W86357259 hasConceptScore W86357259C2777834853 @default.
- W86357259 hasConceptScore W86357259C2778281098 @default.
- W86357259 hasConceptScore W86357259C2781426361 @default.
- W86357259 hasConceptScore W86357259C44750222 @default.
- W86357259 hasConceptScore W86357259C551662922 @default.
- W86357259 hasConceptScore W86357259C556758197 @default.
- W86357259 hasConceptScore W86357259C58202505 @default.
- W86357259 hasConceptScore W86357259C74939039 @default.
- W86357259 hasConceptScore W86357259C95383336 @default.
- W86357259 hasLocation W863572591 @default.
- W86357259 hasOpenAccess W86357259 @default.
- W86357259 hasPrimaryLocation W863572591 @default.
- W86357259 hasRelatedWork W1487177764 @default.
- W86357259 hasRelatedWork W1513588344 @default.
- W86357259 hasRelatedWork W1530089653 @default.
- W86357259 hasRelatedWork W1603609128 @default.
- W86357259 hasRelatedWork W2086572515 @default.
- W86357259 hasRelatedWork W2111422844 @default.
- W86357259 hasRelatedWork W2151196601 @default.
- W86357259 hasRelatedWork W2162477777 @default.
- W86357259 hasRelatedWork W2177318119 @default.
- W86357259 hasRelatedWork W2184318863 @default.
- W86357259 hasRelatedWork W2288471578 @default.
- W86357259 hasRelatedWork W2301946236 @default.
- W86357259 hasRelatedWork W3123384630 @default.
- W86357259 hasRelatedWork W3123696562 @default.
- W86357259 hasRelatedWork W3124048263 @default.
- W86357259 hasRelatedWork W3125177716 @default.
- W86357259 hasRelatedWork W3125481423 @default.
- W86357259 hasRelatedWork W3164812298 @default.
- W86357259 hasRelatedWork W320001591 @default.
- W86357259 hasRelatedWork W87447167 @default.
- W86357259 isParatext "false" @default.
- W86357259 isRetracted "false" @default.
- W86357259 magId "86357259" @default.
- W86357259 workType "article" @default.