Misconception · MIS:dtl-is-estimated-current-tax-payable

Mistaken idea “A deferred tax liability is estimated current tax payable”

Mistaken reasoning: This mistake combines future taxable consequences with current tax.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

The deferred tax liability represents future consequences and remains separate from the current payable rollforward.

Where to watch

When this mistake may appear

  • A deferred tax liability is measured.
Check your work

Your work may contain this mistake if:

  • Include the deferred tax liability in current taxes payable.