deferred tax
Enable an agent to identify deferred income-tax consequences, assess their recognition and measurement, and determine what evidence or accounting action is required.
Bundle → Layer → Finding → Questions Filled
6 bundles · 11 layers · 18 findings · 28 questions
Tax consequence identification Establishes whether an item creates a deferred income-tax consequence and identifies its origin.
Accounting and tax bases
Connects the financial-reporting position to its treatment for income-tax purposes.
Temporary difference test
Record the carrying amount, tax base and future recovery or settlement consequences before classifying a difference.
- What carrying amount and tax base apply to this item at the reporting date, and what supports each amount? measurement
- Why does recovery or settlement create a future taxable or deductible amount rather than a permanent difference? boundary
Carryforward origins
Identifies potential deferred tax assets that originate in unused losses or credits.
Loss and credit entitlements
Distinguish deductible loss carryforwards from tax credits and establish who can use them.
- Is the entitlement an unused tax loss, an unused tax credit or a current tax refund claim? definition
- Which filings, assessments or other records establish its amount, owner and expiry? provenance
Recognition and framework Determines how identified tax consequences enter the financial statements.
Governing accounting basis
Locates the position within the relevant reporting framework and entity context.
Applicable recognition rule
Attach recognition decisions to the applicable framework rather than assuming one universal treatment.
- Which reporting framework, version and reporting-entity boundary govern this assessment? provenance
- Which recognition rule applies to this type of temporary difference, loss or credit? definition
Exceptions and recognition status
Records whether ordinary recognition is modified by a specific exception or restriction.
Exception assessment
Evaluate framework-specific exceptions, including those potentially relevant to initial recognition, goodwill or investments.
- Does a recognition exception apply, and which transaction facts satisfy its conditions? boundary
- What amount should be recognised or left unrecognised, and what change would require reassessment? action
Reversal and measurement Measures the future tax consequence using supported assumptions about reversal and applicable taxation.
Recovery and settlement
Describes how and when the underlying difference is expected to reverse.
Reversal profile
Link expected use, sale or settlement to the timing and character of future taxable or deductible amounts.
- How is the asset expected to be recovered or the liability settled, and does that method change its tax consequences? measurement
- What supports the reversal periods and their classification into relevant tax categories? provenance
Rates and calculation
Connects the reversal profile to the rate and calculation required by the reporting framework.
Supported measurement
Record rate selection, legal status and calculation conventions separately from the underlying tax-base amounts.
- Which rate or rate schedule applies to each expected reversal, and does its legal status meet the reporting framework's requirements? measurement
- How are credits, currency translation and any framework restrictions on discounting reflected in the calculation? measurement
Asset recoverability Evaluates whether potential deferred tax benefits can support an asset under the applicable recognition approach.
Eligible profit sources
Matches deductible amounts and credits to usable sources of taxable profit.
Utilisation matching
Assess availability within the appropriate taxpayer, jurisdiction, income category and utilisation period.
- Which reversing taxable differences, future taxable profits or other permitted sources support utilisation? measurement
- Do expiry dates, annual caps, ownership changes or restrictions on income categories prevent that utilisation? boundary
Evidence and reassessment
Weighs supporting and contradictory evidence for the recognised deferred tax asset.
Recoverability conclusion
Make the recognition conclusion traceable to evidence and the framework's assessment threshold.
- What historical results, forecasts and feasible tax-planning assumptions support or contradict recovery without double-counting taxable profits? provenance
- Under the applicable threshold, what asset or valuation allowance is required, and which new evidence would change that conclusion? action
Reporting and movements Explains changes in deferred tax and how balances and movements appear in financial reporting.
Movement attribution
Tracks the causes of changes between opening and closing balances.
Balance reconciliation
Separate origination, reversal, rate changes, recognition changes and transaction-related movements.
- Which movements reconcile opening and closing balances, including acquisitions, disposals and currency effects where applicable? measurement
- Where must each movement be recorded given its origin and the framework's allocation requirements? action
Presentation and disclosure
Determines permissible aggregation and the explanations needed to interpret reported positions.
Netting and explanation
Preserve gross positions while assessing offsetting criteria and relevant disclosure obligations.
- Which asset and liability balances meet the framework's offsetting conditions, considering taxing authority, taxpayer and relevant legal rights? boundary
- Which recognised balances, unrecognised benefits, expiries and significant judgements require disclosure? action
Evidence and external alignment What the world already says about this thing, gathered so the model can be checked against it.
Reported evidence
Findings from the breadth pass, kept separate from the structural claims.
Check these first
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these check these first hold for the sense of deferred tax this model covers, and on what evidence? provenance
Kinds and varieties
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these kinds and varieties hold for the sense of deferred tax this model covers, and on what evidence? provenance
Standards and regulation
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these standards and regulation hold for the sense of deferred tax this model covers, and on what evidence? provenance
Real-world use
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these real-world use hold for the sense of deferred tax this model covers, and on what evidence? provenance
Typical measurements
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these typical measurements hold for the sense of deferred tax this model covers, and on what evidence? provenance
Failure modes and hazards
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these failure modes and hazards hold for the sense of deferred tax this model covers, and on what evidence? provenance
Regional variation
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these regional variation hold for the sense of deferred tax this model covers, and on what evidence? provenance
Neighbouring kinds and how to tell them apart
Recalled without web access and unsourced; every item is a lead to verify.
- Which of these neighbouring kinds and how to tell them apart hold for the sense of deferred tax this model covers, and on what evidence? provenance
Classifiers Filled
- Family
- Thing Registry
- Category
- Cross-cutting context
- Entry kind
- thing
- Plane
- XCT
- Domain
- XCT.STA
What it is Filled
Deferred tax is the accounting recognition of future income-tax consequences arising from differences between the carrying amounts of assets and liabilities and their tax bases, and from unused tax losses and credits, subject to the applicable recognition rules.
In scope
- Taxable and deductible temporary differences associated with assets and liabilities
- Deferred tax assets and liabilities, including recognition exceptions and restrictions
- Unused tax losses and credits potentially supporting deferred tax assets
- Measurement using applicable tax rates and expected recovery or settlement
- Evidence supporting deferred tax asset recoverability
- Deferred tax movements, presentation, offsetting and disclosures
Out of scope
- Current income-tax liabilities, receivables and tax-return preparation
- Payment extensions or instalment arrangements for taxes already payable
- Underlying asset valuation and liability recognition except as inputs to deferred tax
- Tax planning implementation and legal interpretation of tax legislation
- Taxes outside the applicable income-tax accounting framework
- Standalone accounting for uncertain tax positions, except where their treatment affects deferred tax inputs
Why it exists Filled
Enable an agent to identify deferred income-tax consequences, assess their recognition and measurement, and determine what evidence or accounting action is required.
Distinguishing features Filled
- A position concerns future income-tax consequences of recognised transactions or eligible carryforwards, rather than merely an unpaid current tax bill.
- A difference between carrying amount and tax base must be assessed for future tax consequences; a permanent difference does not itself create deferred tax.
- A potential deferred tax asset requires a separate recognition and recoverability assessment; identifying a deductible amount alone does not establish a recognised asset.
- An accounting deferred tax liability is distinguishable from an agreement with a tax authority to defer payment.
- The applicable accounting framework can change recognition, measurement and presentation, so an otherwise identical economic position is not fully specified without its reporting basis.
What robots and AI may and may not do Filled
Must not
- Recognise deferred tax assets without evidence that future taxable profits will be available.
- Manipulate deferred tax estimates to smooth or inflate reported profits.
- Present deferred tax figures as tax advice for a person or company.
- Mix up figures under different accounting frameworks without saying so.
Only with a human decision
- Signing off financial statements or audit opinions.
- Judgements on the recoverability of tax losses.
May
- Calculate and present deferred tax balances under the applicable accounting standard, with workings.
- Explain the difference between accounting and tax bases to users of financial statements.
Moral aspects Filled
- Misstated tax balances mislead investors, lenders and employees.
- Accounting estimates are a common route for earnings manipulation.
Who is affected
- Investors and lenders
- Employees and pension members
- Tax authorities
Owners Filled
Steward
The reporting entity's directors answer for the figures; auditors check them.
Links to other meta-models Filled
parent
- Q2155835 - registry parent class
What else AI and robots need to interact with it Filled
Identity and identifiers required Filled
- Vercy registry: vr.tr.deferred-tax
- Wikidata: Q1032875 (https://www.wikidata.org/wiki/Q1032875)
Direct properties not applicable Not applicable
- Reporting framework: Named accounting framework, applicable version and reporting date
- Tax attribution: Taxpayer or tax group, taxing authority, jurisdiction and income-tax regime
- Origin of deferred tax: Taxable temporary difference; deductible temporary difference; unused tax loss; unused tax credit
- Carrying amount and tax base: Amounts in a specified currency at a specified date
- Underlying difference or carryforward: Currency amount, with tax credits separately identified from deductible tax-base amounts
- Recognition status: Recognised; partly recognised; unrecognised; exception applies; assessment unresolved
- Applicable tax rate: Percentage or rate schedule, linked to legal status and expected reversal period
- Expected reversal or utilisation: Period or time range; recovery or settlement method; expiry and utilisation restrictions
- Recoverability support: Evidence linking deductible amounts or credits to eligible taxable profit sources
- Deferred tax balance: Currency amount, distinguishing potential amount, recognised amount and any valuation allowance
- Accounting destination: Profit or loss; other comprehensive income; equity; acquisition accounting; other framework-specific treatment
Plane XCT: no invented physical properties.
Recognition not applicable Not applicable
Not applicable
Deferred tax is an accounting construct identified from records and calculations rather than visual appearance.
Capabilities and actions required Filled
- Identify candidate deferred tax positions from carrying amounts, tax bases and carryforwards.
- Classify future tax consequences and flag potential recognition exceptions.
- Estimate balances under documented rate, timing and recovery assumptions.
- Assess deferred tax asset support using eligible profit sources and utilisation restrictions.
- Reconcile balance movements to their originating transactions and accounting destinations.
- Flag missing evidence, reassessment triggers and presentation decisions requiring review.
Hazards and failure modes required Filled
- Overstated deferred tax assets can lead to sudden write-downs.
- Complex calculations are error-prone and hard to audit.
Standards and interfaces required Filled
- IAS 12 Income Taxes, International Accounting Standards Board.
- ASC 740 Income Taxes, Financial Accounting Standards Board.
Context of use required Filled
- Deferred tax is encountered in financial reporting when accounting values and tax bases produce future income-tax consequences.
- It is used to recognise qualifying future tax benefits and obligations and explain differences between accounting profit and income-tax expense.
Sources Filled
- Wikidata item Q1032875: deferred tax - identity and sense of the item
- Wikipedia: Deferred tax - general description of the item
Open questions
- Which reporting frameworks should the model explicitly support, and how should their recognition and valuation-allowance approaches be represented without treating them as interchangeable?
- Which jurisdiction-specific rules determine tax bases, carryforward eligibility, utilisation limits and applicable rates for the intended instances?
- How should the model represent special regimes, including minimum-tax rules, where framework-specific exceptions or disclosures may apply?
- What evidence standard and forecast horizon should support recoverability assessments in the intended reporting context?
- Does the registry already contain a world model covering deferred income tax, and which neighbouring models should supply current-tax and uncertain-tax-position inputs?
Machine files
Provenance
thing registry research (pass 2) · unreviewed
Built from: models/things/publications/thing-q1032875/spec.json