Question ID: 124193 - I have seen a slide that states that given an increase in tax rates, DTLs increase and DTAs decrease. Can you provide and easy way to remember this?

The slide states that the DT EXPENSE increases and decreases respectively with DTLs increasing and DTAs decreasing. With an increase in the tax rate, both a DTA and DTL recorded in the balance sheet will increase. If the DTA rises, assets rise, equity must increase to compensate by lowering the DT expense in the income statement. If the DTL rises, liabilities rises, so equity must fall by an increase in the tax expense in the income statement.