Starbucks Income Classifications

Financial statements are records of the activities and give insight to the position of a particular business or entity. Such information is gathered and presented in a structured manner to be easily understood by potential investors as well as those needed to audit. Information needs to be laid out clearly in order to find misstatements or minor errors throughout. Within these financial statements are specific classifications of expenses as well as any paid interest and when interest or dividends are received. Knowing where and how to classify these components create a flow for any financial statement and also add a structure for all other reporting. This paper will examine the Starbucks Corporation fiscal year end statements and the income classifications throughout the annual reports given. Harold Averkamp …show more content…
Deferred tax expense may be negative which results in current tax expense being less than current income tax obligation” (Income Tax: Current Vs. Deferred, 2013).
A deferred tax expense, a benefit, is either the decrease or increase in the deferred tax asset balance pertaining to through the specified accounting period, from start to finish. Deferred tax assets should be reduced by a valuation allowance if there is a possibility of it not being …show more content…
is the Property, Plant and Equipment deferred tax liability. As noted within note fifteen of the income tax portion of the reports, this item has the highest deferred tax liability as of October 3, 2010. A future taxable amount is an indication that any taxable income for that specific item, or asset, is less than the pre-tax accounting income. Spiceland et al. describe a future taxable amount as “the future tax consequence of temporary difference will be to increase taxable income relative to accounting income” (pg.