Deferred Tax Assets and Deferred Tax liability- Meaning of....?

Question

Please explain the meaning of the above two terms in detail . An answer with a concrete example will be appreciated.
Thanks.....................

Answer 1

Deferred tax benefits and liabilities basically arise from the difference in treatment of certain items like depreciation, for accounting and tax purposes. It is an extremely complex subject. I suggest you take your time to digest each of the following sections in this topic. Just click on the link to assess the sections.

Contents
What is tax accounting?
Tax accounting – the process
Recognition of current income tax expense
Determine the tax base of assets and liabilities
Calculate temporary differences
Identify temporary differences that are not recognised
Review deductible temporary differences and unused tax losses
Determine appropriate tax rates
Determine movement in deferred tax balances
Subsequent recognition
Subsequent measurement
Presentation
Disclosure