Deloitte
Accounting Research Tool
...
Chapter 8 — Accounting for Income Taxes in Separate Financial Statements

8.4 Current and Deferred Income Taxes in the Balance Sheet of Separate and Carve-Out Financial Statements

8.4 Current and Deferred Income Taxes in the Balance Sheet of Separate and Carve-Out Financial Statements

As discussed in detail above, an allocation of current and deferred income tax expense to separate and carve-out financial statements is often necessary. However, there is no authoritative guidance in ASC 740-10-30-27 or elsewhere that specifically addresses how current and deferred taxes should be reflected on the balance sheet of the separate or carve-out financial statements. ASC 740-10-30-28 does, however, provide examples of methods of allocating current and deferred tax expense that are not consistent with the broad principles established by ASC 740. Such examples include allocating only current taxes payable to a member of the group that has taxable temporary differences and allocating deferred taxes to a member of that group by using a method fundamentally different from the asset and liability approach described in ASC 740.

Footnotes

2
It may be appropriate in some circumstances to modify the separate-return method (see Section 8.3.1.1.1). We would not generally expect the types of modifications to the separate-return method that are described in that section to affect the applicability of the guidance in this section to separate financial statements.
3
The concepts in this section are equally applicable to income taxes payable and receivable. However, for ease of discussion throughout the remainder of this section, we refer only to income taxes payable.