Excess of actual income tax amount over the amount of tax payable shown on an income statement, which occurs due to temporary difference in the recognition of income and expense items. This excess is recognized as a non-current asset on the taxpayer's balance sheet, until its amortization in the ...
The initial transaction is recorded as income but will be later changed to an expense. For example, payment for office supplies at a fee of $50, but you only spend $25. The difference of $25 is recorded as an expense.
Type of shares (stock) whose right to dividend is postponed until after the other stockholders receive their dividend. Such shares are held usually by the firm's founders.
Prepaid recurring expense (such as insurance, interest, or rent) carried forward as an asset, until the associated service or benefit is received.
Prepayment received from customers or tenants, and carried forward as a liability until the associated goods, services, or benefits are delivered. Also called deferred liability or deferred revenue.
Benefits, bonuses, incentives, and other forms of remuneration that are paid out in an accounting period later than in which they are awarded, in accordance with a plan. See also immediate compensation.
Cost that is accounted-for in the future (and not in the accounting period in which it is incurred) because of its anticipated future benefit, or to comply with the requirement of matching costs with revenues. Deferred charges include start up costs, financing costs for long-term debt, costs of ...
This involves holding off on recognizing costs related to insurance until the legal agreement has been signed by the insurance firm and the client.
