If deferred tax assets are expected to not be reversed, they should be treated as Equity.
Equity in the context of finance refers to ownership of assets with potential obligations such as debts.
For accounting purposes, equity is calculated by deducting liabilities from the value of the assets.
The difference of $14,000, for instance, is equity if a person owns a car worth $24,000 and owes $10,000 on the loan used to purchase the vehicle.
A single asset, like a car or house, or an entire company may be covered by equity. A company that needs to launch or grow its operations can sell equity to raise money that doesn't need to be repaid on a predetermined timeline.
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