Hi - have 2 specific questions regarding tax credits: Looking at a company that made a chunk of earnings from the unwind of a deferred tax asset from intangibles. Shouldn’t an unwind be 0 net impact on earnings or what are the steps impacting the financial statements? Or has an expense been incurred before and hence the unwind leads to the positive earnings impact? What is an DTA related to unused capital allowance? How is the DTA booked? Thanks

Hi Sa-Jue, The general reversal of a DTA related to intangibles has no impact on net earnings. This is because the reversal of the DTA creates deferred tax expense, but this is offset by a current tax benefit.

DTA - unwind and unused capital allowance

Hi - have 2 specific questions regarding tax credits:

Looking at a company that made a chunk of earnings from the unwind of a deferred tax asset from intangibles. Shouldn’t an unwind be 0 net impact on earnings or what are the steps impacting the financial statements? Or has an expense been incurred before and hence the unwind leads to the positive earnings impact?
What is an DTA related to unused capital allowance? How is the DTA booked?

Thanks

6,334 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '28 Jun 2026 Cohort

5.00/5

Investment Banking Short Resume Review / Recap

“My mentor got on at 4 AM to make the session work with my schedule, which says a lot about how much he cares about helping students. He walked through every single point I brought, never rushed me, and made sure I actually understood each one before moving on. He was patient and direct, and he gave me honest feedback when something needed work. I left the call with a clear plan and a lot more confidence than I had going in. I would absolutely book with him again and recommend him to anyone looking for real, practical guidance.”

Class of '29 Aug 2026 Cohort

5.00/5

Investment Banking Mock Interview

“I loved how he was specific to me. And what i needed to work on and he made and mimicked the same style as an interview ( like a real life - going into some behavioural questions ( wanting to hear some market updates ) then going straight into a technical interview . It was nice to also find a mentor from the same background who played tennis and also into a sector I’m interested in and explained how to handle -> why a particular group style sort of questions and giving more attributes I cool pull from given similar backgrounds ”

See All 11,642 WSO Academy Reviews

1 Comments

DilutedEPS

PE

7y

Most Helpful

Ut minima a adipisci delectus. Tempore est eos voluptates vitae adipisci voluptas voluptas. Ipsa nesciunt provident odit.

Libero amet eos adipisci. Consequatur aut placeat et doloremque minima est. Et ipsam sed ad nesciunt. Quia velit quod inventore ea et. Doloribus dolor voluptatem nemo esse.

Reply

Quote

Report

Other

+435	Is UBS really that bad?	79	5h
+265	Investment Banking is Divine	40	3d
+225	Another $115bn Mega deal for these banks. Congrats!	46	1d
+216	US 2027 SA IB worried about background check	53	3d
+143	Which Offer to Accept: UBS Analyst Role or Part Time Cashier at the Local Taco Bell	32	9h
+95	Useless associates	24	3h
+64	Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal	17	7h
+55	Differences in Restructuring Teams?	24	1d
+52	FIG Pigeonholes you - is it true?	23	2h
+43	GF is an IB Analyst at a top BB, hates it, what exit options does she have?	20	1d

1	redever	99.2
2	BankonBanking	99.0
3	Secyh62	99.0
4	kanon	99.0
5	GameTheory	98.9
6	DrApeman	98.9
7	CompBanker	98.9
8	dosk17	98.9
9	Betsy Massar	98.9
10	Jamoldo	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

DTA - unwind and unused capital allowance

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

DTA - unwind and unused capital allowance

See All Comments - 100% Free

Trending Content - Investment Banking Forum