Deferred Taxes (Cash Flow)

What are Deferred Taxes (Cash Flow)?

Deferred Taxes (Cash Flow) represent the net increase or decrease of a company’s deferred taxes, reported as a non-cash adjustment in order to reconcile net income to cash flows. These are derived from a company’s operations.

Deferred taxes arise when tax expense in income statement and tax payable in tax return differ due to temporary differences. Having no actual cash component, this item also reflects changes in deferred taxes, reported as part of changes in working capital.

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