This document discusses the differences between taxable and financial income, examples of permanent and temporary differences, and how deferred tax assets and liabilities are derived from these differences. It also addresses how net operating losses are disclosed on financial statements, whether a carryforward or carryback is more beneficial to a company, and why a company may forego a carryback.

1. Why are there differences between taxable and financial
income? What are some examples of permanent and temporary
differences? Why do these differences exist? How do they affect
the financial statements?
How are deferred tax assets and deferred tax liabilities derived?
How do they relate to the difference between tax expense and
taxes payable? How could an organization have a tax
receivable?
Why is the tax expense reported on the income statement
comprised of current and deferred tax?
How are the tax benefits of net operating losses (NOL)
disclosed on financial statements? Which is more beneficial to
an organization, an NOL carryforward or an NOL carryback?
Explain why. When would a company decide to forego a
carryback?