CFA CFA Level 1 Change in tax rate

Change in tax rate

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    • maboi_1da
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      Hi all

      In the country lowers the tax rate, does it not effect the previous years DTA and DTL?

    • hairyfairy
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      @maboi_1da‌ Yes, as far as I know. If corporate tax rate is lowered, DTL will experience an immediate, one-time adjustment, a decrease to the balance sheet and increase in earnings in the income statement. DTA will experience the opposite.

    • maboi_1da
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      do the effect occur on the current year? or do I have to make adjustment to previous years

    • hairyfairy
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      The adjustment happens immediately, so only current year.

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