Please use this identifier to cite or link to this item:
Author(s): Silva, J.
Souto, N.
Pereira, J.
Editor: Sandeep Kautish
Date: 2021
Title: Valuation of deferred tax assets using a closed form solution
Book title/volume: Using strategy analytics to measure corporate performance and business value creation
Pages: 151 - 175
Reference: Silva, J., Souto, N., & Pereira, J. (2021). Valuation of deferred tax assets using a closed form solution. Em Sandeep Kautish (Eds.). Using strategy analytics to measure corporate performance and business value creation (pp. 151-175). IGI Global. 10.4018/978-1-7998-7716-5.ch008
ISBN: 9781799877172
DOI (Digital Object Identifier): 10.4018/978-1-7998-7716-5.ch008
Keywords: Valuation
Deferred tax asset
Análise de balanços -- Balance sheet analysis
Abstract: Deferred tax asset (DTA) is a tax/accounting concept that refers to an asset that may be used to reduce future tax liabilities of the holder. It usually refers to situations where a company has either overpaid taxes, paid taxes in advance, or has carry-over of losses (the latter being the most common situation). DTAs are thus contingent claims, whose underlying assets are the company's future profits. Consequently, the correct approach to value such rights implies the use of a contingent claim valuation framework. The purpose of this chapter is to propose a precise and conceptually sound mathematical approach to value DTAs, considering future projections of earnings and rates, alongside the DTA's legal time limit. The authors show that with the proposed evaluation techniques, the DTA's expected value will be much lower than the values normally used in today's practice, and the company's financial analysis will lead to much more sound and realistic results.
Peerreviewed: yes
Access type: Open Access
Appears in Collections:ISTAR-CLI - Capítulos de livros internacionais

Files in This Item:
File SizeFormat 
bookPart_85662.pdf771,29 kBAdobe PDFView/Open

FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpaceOrkut
Formato BibTex mendeley Endnote Logotipo do DeGóis Logotipo do Orcid 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.