DTL
Business & Finance abbreviation · Accounting
| Stands for | Deferred tax liability |
|---|---|
| Categories | Business & Finance |
DTL stands for Deferred tax liability, an accounting abbreviation.
Balance sheet liability for income taxes that will be payable in future periods because of taxable temporary differences, such as when tax depreciation runs ahead of book depreciation. The tax has been postponed, not avoided.
Example: Accelerated tax depreciation on the new fleet created a DTL of $55 million.
Usage notes
DTLs reverse as the temporary differences unwind. Analysts sometimes treat long-lived DTLs, which may never reverse while a company keeps investing, as quasi-equity. Since ASU 2015-17, all deferred tax balances are classified as noncurrent on US GAAP balance sheets.
Related abbreviations
More accounting abbreviations
- Cr – Credit
- CVP – Cost-volume-profit analysis
- CY – Calendar year
- D&A – Depreciation and amortization
- Dr – Debit
- DTA – Deferred tax asset
- EBIT – Earnings before interest and taxes
- EBITDA – Earnings before interest, taxes, depreciation and amortization
- EBITDAR – Earnings before interest, taxes, depreciation, amortization and rent…
- EBT – Earnings before taxes
- EPS – Earnings per share
- FASB – Financial Accounting Standards Board