Hi,

My confusion is on DTAs and DTLs and how Revenue and Expenses are affected by them. I'm not taking an Accounting course, but studying for the CFA Level 1. This subject is ticking me off. Assistance would be greatly appreciated.

Ari

Year Temporary Difference Occurs

Pretax Income Taxable Income DTA/DTL

RevenueLower Higher DTA

Revenue Higher Lower DTL

Expenses Higher Lower DTL

Expenses Lower Higher DTA