Fannie Mae-No Politics (FNMA)

[capitalismforever]

do you think the DTA of the size F and F have is related to paying too much (or accrual adjustments)

I don't know. Probably both. Look at the cash tax paid in the cash flow statements and compare to the tax provisions in the income statements. Quite a difference.

DTAs of that size are often from NOL carry forwards (not backwards)

When a company incurrs a NOL, it is first carried back two years and applied to taxes that have already been paid. The carry back produces a DTA because taxes were already paid and are now being reversed due to the NOL. Anything left over can then be carried forward up to 20 years.

After they've been carried back for two years and are used to establish or add to an existing DTA, The remainder is not classified as a DTA. They can be classified as a one-time expense. Companies classify them in various ways.

DTA's can only be carried forward for 7 years. There is a distinct difference between the two. In any event, the calculation for impairing DTA's, as I previously pointed out, is extremely simple.