Deferred Taxes and 2017 Tax Law Changes: A Teaching Case

Abstract

This paper presents a teaching case for use in either intermediate financial accounting or one or more different tax classes. The case deals with the impact of the 2017 tax law changes (Tax Cuts and Jobs Act) on deferred tax calculations for financial reporting. It includes the change in how net operating losses (NOLs) will affect deferred taxes. Students are given the opportunity to think critically about the tax law changes and how they affect financial reporting for taxes for 2017 and years beyond.