The SAP admitted portion of DTA relates to loss carrybacks. Which term describes this concept?

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Multiple Choice

The SAP admitted portion of DTA relates to loss carrybacks. Which term describes this concept?

In SAP, the admitted portion of a deferred tax asset is the part you expect to realize through actual tax refunds from prior years. When that realization comes from applying losses to earlier years, reducing past tax payments, this is described by loss carrybacks. So the term that fits this concept is loss carrybacks. This is different from carryforwards (which relate to future years’ taxable income), tax credits (which reduce tax payable directly), or other non-fitting terms like revenue offsets.

In SAP, the admitted portion of a deferred tax asset is the part you expect to realize through actual tax refunds from prior years. When that realization comes from applying losses to earlier years, reducing past tax payments, this is described by loss carrybacks. So the term that fits this concept is loss carrybacks. This is different from carryforwards (which relate to future years’ taxable income), tax credits (which reduce tax payable directly), or other non-fitting terms like revenue offsets.

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