deferred tax liabilities
income tax expense > taxes payable
- revenue recognized earlier, incurs tax later
- expenses tax-deducted earlier, recognized later
e.g. due to depreciation method
deferred tax assets
taxes payable > income tax expense
- revenue incurs tax earlier, recognized later
- expenses recognized earlier, tax-deducted later
e.g. post employment benefit, warranty expenses, tax loss carryforwards
