Under U.S. GAAP, subsequent-period changes in deferred tax items that were originally charged or credited to shareholders’ equity or OCI are allocated to the income tax provision related to continuing operations (i.e., no backwards tracing). For example, the effect of a change in the subsequent tax rate on recorded deferred tax would be recognized in continuing operations even if the tax expense or benefit was originally recorded in OCI. (Note that ASC 740-10-45-20 and ASC 740-20-45-11(c)–(f) provide limited exceptions to the above guidance.) See Section 6.2.4 for additional guidance.
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