Financial Accounting

c) Reference

Beck’scher Bilanzkommentar, § 266, nos. 69–82 and § 271

Coenenberg et al., 2016 (1), p. 250

Exercise 13: Deferred tax assets

Category:	Knowledge/Application
Time to solve:	5 minutes

a) Exercise

Name at least three transactions that result in deferred tax assets.

b) Solution

1. Recognition of a provision for onerous contracts. Under the Commercial Code, recognition is mandatory; under German tax law, it is forbidden.
2. Higher measurement of (pension) provisions under the Commercial Code than under German tax law, e.g. because of discounting of provisions according to the Commercial Code with an interest rate that is lower than the 6% applicable under tax law.
3. Use of the option to expense a disagio fully in the first period according ...