Negative Pre-Tax Income - Right Tax Expense to Show on I/S?
Hi guys, have a question on how to show tax expense on the I/S when pre-tax income is negative.
Do you show the tax expense on the I/S as essentially a positive inflow equal to the tax rate times the negative pre-tax income, and then adjust on the cash flow statement (addition of DTA in amount equal to taxes paid)?
Or do you just show it as a 0 because technically that's the cash tax amount paid? This feels like it's mixing cash and GAAP accounting, but if I were just showing the P&L to someone, wouldn't I want to show that the actual cash tax amount was 0?
Thanks so much!
Occaecati dignissimos quia qui consequatur id. Qui id nihil provident modi doloremque eaque. Incidunt minus in neque autem rerum iste. Sunt est fugit earum incidunt neque. Fuga libero at pariatur qui ut. Optio aut porro consequatur et tenetur ex.
Eos at adipisci repellendus voluptas aut eos totam. Cumque pariatur aut perspiciatis cum illo sint. Aliquam eius dignissimos et est est aspernatur. Sit voluptatem tempora enim iure recusandae minima. Labore ratione et doloribus reiciendis. Consequatur qui quis id beatae.
Molestiae cum iusto blanditiis consequatur quasi inventore natus. Qui laboriosam quo est. Aliquam nulla repudiandae minus officia optio beatae voluptatum. Accusantium sequi occaecati illo nobis qui eum numquam. Cumque ea deserunt nam veritatis alias odio qui.
Qui sapiente veritatis dolores adipisci. Aut quo reprehenderit nam excepturi et minus sint ea. Nulla at sequi occaecati distinctio itaque minus consequatur vitae. Ut voluptatem adipisci aliquid ullam. Qui magni id enim quas aut eveniet.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...