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When we review deferred income taxes, we look at timing differences that may have occurred. By doing so, we can separate those between temporary and
When we review deferred income taxes, we look at timing differences that may have occurred. By doing so, we can separate those between temporary and permanent. Some current timing differences may occur that become noncurrent depending upon the circumstances, such as a change in accounting method. So, it may be preferable to classify all as noncurrent so it stays out of the current ratio, which many companies are reviewed on for purposes of obtaining loans and by interested investors. Any other thoughts on this topic?
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