English translation: reversal of activated deferred taxes
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German to English translations [PRO] Bus/Financial - Accounting
German term or phrase:Auflösung latenter Steuern
"Auflösung latenter Steuern führt zu hohem Verlust."
I do not understand this sentence. "Auflösung" usually means to me that provisions, for instance for possible taxes in this case, are released. The provision would have burdened profits when it was created and should (if I am not wrong) increase profits when it is released.
Explanation: latente Steuern gibt es auch auf der Aktivseite der Bilanz (für Steuergutschriften). Hier ist es ein Abgrenzungsposten und keine Rückstellung
-------------------------------------------------- Note added at 2002-10-24 14:16:16 (GMT) --------------------------------------------------
Beispiel: This reversal of deferred taxes was netted against certain other tax provisions to provide a net reduction in the provisions for taxes of $926,000 for the second quarter.
-------------------------------------------------- Note added at 2002-10-24 14:53:43 (GMT) --------------------------------------------------
oh yes, thank you TonyTK! my agree to Ralf\'s suggestion was too fast. In my opinion they are talking about tax assets (didn\'t really see the liabilties...)
Thanks to all of you.
This was a difficult one. I finally used "reversal of activated deferred taxes", which seems to make sense of the loss that is being created. Unfortunately the author was not very helpful in his formulations.
Explanation: I don't quite get it either... the reversal or release shouldn't have an impact on profitability, whereas the original provision would have burdened the income statement.
Ralf Lemster Germany Local time: 00:15 Native speaker of: German PRO pts in category: 143
Grading comment
Hi Ralf, take a look at the addions! Interesting case.
The translation workplace 
peer agreement (net): +3
