...Russ Hamilton ABSTRACT Although deferred tax liabilities (DTLs) represent a significant financial statement liability for most firms, research reaches conflicting conclusions regarding investors’ valuation of these items. Using an expanded dataset of hand-collected tax footnotes, I examine...

...Derek Johnston; Lisa Kutcher ABSTRACT We explore whether an accounting treatment similar to that required under IFRS improves the ability of the stock-based compensation component of deferred tax assets to predict future tax payments, relative to U.S. GAAP. Using hand-collected data for S&P...

... assertions I divide total BTDs into temporary and permanent categories and hypothesize that temporary BTDs (reflected in deferred taxes) predict future changes in pretax earnings, whereas permanent BTDs predict future changes in tax expense. The results are consistent with these hypotheses. Prior studies...