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Cwhen evaluating financial statements of any client from lending perspective , how will one analyse the impact of deferred tax liability ?‎

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Answer added by  Amjad Ali, Regional Manager, NATIONAL BANK OF PAKISTAN
10 years ago

Simply it will be treated as current liability and will be accounted for when calculating current ratio. It is also a sourse of cash inflow

 

Answer added by  Soumyadeep Mazumder, Associate Vice President - Retail Risk, IDFC First Bank Ltd.
6 years ago

Current ratios to get spiked as the same will be amortized over a period of time.

 

Answer added by  Vinod Jetley, Assistant General Manager, State Bank of India
10 years ago

A deferred tax liability occurs when taxable income is smaller than the income reported on the income statements. This is a result of the accounting difference of certain ... See More