In a full 3-statement LBO model, how do you take into consideration the "bonus" depreciation introduced by the tax reform (i.e., 100% of Capex incurred) and the cap on interest expenses deduction?
From what I understand, the Income Statement does not reflect the changes... Do you create a separate schedule and reflect the differences as DTL/DTA in the bs/cf?
Yes, you calculate the difference in cash vs. GAAP taxes and interest expense. You can do that on a separate schedule and then adjust on CFS. Your DTA/DTL is just the difference in these schedules.
Great, thanks
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