Deferred tax assets and liabilities v.s Cash Flow

[archived_user]

Hi,
When we use indirect method to adjust net income for operating cash flow, can we net deferred tax assets against deferred tax liabilities, and record an one item cash flow on the CF statement?
I think since assets and liabilities are separate, it would not be appropriate to do so. Thanks.

 

[archived_user]

It’s not common to do so, but there’s no reason you can’t.
It won’t matter for the Level I CFA exam, however.