Can you explain the accounting for deferred a tax assets and deferred tax liabilities?

A deferred tax asset (DTA) or deferred tax liability (DTL) only occurs for temporary difference which are to be reversed in future. If the income as per books (determined by GAAP/IFRS) is more than taxable income (determined tax rules), then it means that the company have paid less tax as per book's income and will have to pay more tax in future and thus recorded a deferred tax liability (DTL). Similarly, if income as per books is less than taxable income, then it means the company will pay more tax now and will have to pay less tax in future. So, it will record be a deferred tax asset (DTA).

Example: GAAP Net Income = $100, Taxable income = $150 and the tax rate is 30%, then the following journal entry will be recorded: 

  Dr. Tax expense                 30

  Dr. Deferred tax asset       15

  Cr. Taxes payable              45