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Income tax – Deferred tax adjustment

  • This topic has 0 replies, 1 voice, and was last updated Jan-18 by sharz.
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    • sharz
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      Hi Everyone,
      I am unable to understand the below statement, Can somebody please explain the below statement in layman language ?

      A deferred tax adjustment is made to stock holder’s equity to reflect the future tax impact of unrealized gains or losses on available for-sale marketable securities that are taken directly to equity. No DTL is added to the balance sheet for the future tax liability when gains/losses are realized.

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