Financial analysis : Question 2
On Deutsche Telecom's balance sheet there is one line item for deferred tax assets and one for deferred tax liabilities. What's the difference?

Before it listed, DT recorded impairment losses on its fixed assets. This resulted in tax savings which was recorded in the consolidated accounts as an asset under the heading deferred tax asset. In addition, the restatement of the period over which assets were depreciated at the time of consolidation, resulted in the creation of a latent tax liability called a deferred tax liability.

For more information, see chapter 7 of the Vernimmen.