Definition and creation of deferred liabilities
The resulting discrepancy in the accrued tax amount is reflected in special reporting (according to the provisions of PBU 18/02 for accounting for profit tax calculations).
According to PBU, indicators are divided into two types: temporary and permanent. The first include those reflected at one time (period) as expenses/revenues and taken into account in another period for taxation. Indicators of the second type in the form of income or expenses are not taken into account according to the taxable base, but are taken into account according to accounting or vice versa. The result of the resulting discrepancy in the amount of profit before tax, which was greater in terms of income according to the accounting method than according to the tax method, was the emergence of a deferred tax liability (DTL).
IT represents a deferred portion of income tax, causing an increase in income tax in future temporary reporting periods. Recognition of these obligations is carried out in the cycle in which the corresponding temporary differences occurred.
IT = Temporary differences subject to tax * amount of deduction from profit (rate)
The reasons for the formation of temporary differences accepted for taxation may be:
- the difference in methods for calculating depreciation in two accounting options (tax, accounting method);
- difference in the types of accounting for expense transactions: according to the cash method in accounting and according to the tax method, accrual method;
- discrepancy in accounting and taxation methods for reflecting interest payments made by enterprises when using borrowed funds (loans, credits);
- rescheduling (deferment) or payment in installments (installments) of tax payments on profits.
What accounting data will be needed when filling out line 1420
Enterprises, when preparing financial statements, have the legal right to reflect the balanced (i.e., rolled up) amount of deferred assets/liabilities in their balance sheet. In any case, the line contains the amount of deferred tax liabilities, which is relevant as of the reporting date, as of December 31, the previous and previous periods. To enter information in line 1420 you will need to look at:
- credit balance on account 77,
- debit balance for account 09.
So, depending on which method of reflecting the amount of deferred liabilities the organization’s management chooses, additional actions may be required. A couple of points to consider:
- In any case, the indicators on line 1420 are transferred from the balance sheet for the previous year to December 31—the previous and previous periods.
- If in the balance sheet for the reporting year, the indicators as of December 31—the previous and previous periods preceding the previous one—the amounts of deferred assets/liabilities were indicated in expanded form, and it is customary for the enterprise to reflect the amounts of deferred tax assets/liabilities as of the reporting date in a collapsed form, the indicators as of December 31. - those periods will have to be recalculated before reflecting them in the balance sheet for the reporting period - this will ensure the comparability of the reporting data. The same applies to the reverse situation, when the information was reflected in a collapsed manner, but in the reporting period it was decided to indicate the indicators in an expanded manner.
- It is necessary to compare the balance on account 09 with the balance on account 77 - depending on which value is larger, the indicator on line 1420 can be calculated differently (formulas will be given below in the article).
Reflection of deferred tax liabilities in accounting
To display deferred tax liabilities in accounting documentation, a credit of account 77 is used paired with a debit of account 68 (for calculations of taxes and fees). For statements of losses and profits, the display is taken into account on line 2430, for the balance sheet - on line 1420.
For your information! Deferred tax liabilities should not be mixed with permanent tax assets. The source for the appearance of the latter is in the constant discrepancies that arise in accounting methods, accounting and tax. In subsequent periods, permanent differences are not subject to disappearance (as taxable and subtractable). Permanent assets are associated with the reflection of certain costs in only one accounting method - the tax method. For example, the amount of depreciation bonus on capital investments does not find expression in the accounting bonus, because such a concept does not exist in accounting.
Calculation example 1. An enterprise purchased a production tool worth RUB 750,000 through leasing. with a service life of 7 years. According to accounting, depreciation of the acquisition amounted to 50,000 rubles, according to the tax method - 150,000 rubles, due to coefficient 3. Before calculation and taxation, the profit in the first case reached 600,000 rubles, in the second, the taxable base was 500,000 rubles. The tax rate on profit is 20%.
The difference between the two depreciation values amounted to 100,000 rubles. (150,000 rubles - 50,000 rubles), seems temporary, since after 7 years the amount will be fully accounted for as depreciated using both accounting methods.
This difference leads to the formation of IT, equal to 20,000 rubles in the example under consideration. (RUB 100,000 * 20%).
The correctness of the calculation must be confirmed by the same tax amounts according to the PBU method and in the declaration.
Current tax (PBU) = 100,000 rubles. = tax expense on profit (conditional) – IT = 120,000 rub. (profit of 600,000 rubles * 20%) – 20,000 rubles.
Profit tax indicated in the declaration = 100,000 rubles. = taxable base of 500,000 rubles. * 20%.
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Write-off of deferred tax liabilities
When the volume of temporary differences decreases, deferred tax liabilities are reduced and written off. The operation is accompanied by posting to the accounts: Dt 77 (“ONO”) / Kt 68 (“Tax calculations”).
Calculation example 2. For the entire volume of temporary differences taken into account on the taxable base at the beginning of the period (500,000 rubles), a deferred liability equal to 100,000 rubles was calculated. (RUB 500,000 * 20%). Entry on the accounts of the transaction for the accrual of 100,000 rubles: Dt 68 / Kt 77.
By the end of the accounting period, temporary differences were partially written off, amounting to a total of RUB 200,000. In this connection, accrued deferred liabilities amount to RUB 40,000. (RUB 200,000 * 20%).
The previously accrued deferred amount is subject to write-off in the amount of RUB 60,000. (100,000 rub. – 40,000 rub.). Recording a transaction to write off RUB 60,000. according to accounts: Dt 77 / Kt 68.
In the event of disposal of an object in connection with which taxable differences were formed, the accrued liability must be written off in full. The operation performed in this case will be reflected using accounts 77 (Dt) and 99 (Kt) (“Profits, losses”).
Calculation example 3. The initial cost of a fixed asset recorded on the company’s balance sheet is 1,000,000 rubles. The calculation of depreciation at the end of the accounting period was carried out using different methods and amounted to 300,000 rubles. in accounting and 600,000 rubles. according to taxable accounting. The temporary taxable difference for the object in question amounted to RUB 300,000. (600,000 rub. – 300,000 rub.). The deferred tax amount is RUB 60,000. (RUB 300,000 * 20%).
The amount (60,000 rubles) was calculated by posting to the accounts: Dt 68 / Kt 77.
When selling—a fixed asset—the deferred liability must be written off. Operation to write off 60,000 rubles. according to the accounts it will look like: Dt 77 / Kt 99.
For your information! If the income tax rate decreases, deferred liabilities are also subject to write-off, and if the rate increases, additional tax is charged. The wiring affects Dt 84 ch. (“Retained profit”) / Kt 77 account. When decreasing, reverse wiring is performed.
