$1.$ A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year.

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$2.$ A company reduces a deferred tax asset by a valuation allowance if it is probable that it will not realize some portion of the deferred tax asset.

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$3.$ Taxable$$ temporary$$ differences$$ will$$ result$$ in$$ taxable$$ amounts$$ in$$ future$$ years$$ when$$ the related assets are recovered.

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$4.$ Examples$$ of$$ taxable$$ temporary$$ differences$$ are$$ subscriptions$$ received$$ in$$ advance$$ and advance rental receipts.

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$5.$ When$$ a$$ change$$ in$$ the$$ tax$$ rate$$ is$$ enacted,$$ the$$ effect$$ is$$ reported$$ as$$ an$$ adjustment$$ to income tax payable in the period of the change.

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$6.$ Under the loss carryback approach, companies must apply a current year loss to the most recent year first and then to an earlier year.

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$7.$ An individual deferred tax asset or liability is classified as current or noncurrent based on the classification of the related asset$/$liability for financial reporting purposes.

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$8.$ The FASB believes that the deferred tax method is the most consistent method for accounting for income taxes.