Final answer:
The final step in calculating deferred income taxes is to adjust the balance sheet to record the computed deferred tax amount, ensuring that future tax implications are accurately reflected in a company's financial statements.
Step-by-step explanation:
The last step in the computation of deferred income taxes involves adjusting the balance sheet to reflect the correct amount of deferred tax liability or asset. This entails recording the deferred tax amount calculated to the balance sheet, ensuring that the financial statements reflect the future tax effects of the current year's operations. The amount to be recorded will be based on the temporary differences between the financial reporting basis and the tax basis of the company's assets and liabilities. The procedure also ensures compliance with accounting standards such as the International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP).