Introduction: This report covers the case study on Umicore NV, a multinational materials technology company. The case study talks about the impact of income taxes on management decision making and financial statement presentation. The case study starts with the company profile and tells about what the company is and its current performance. By reading further, you will learn about the tax depreciation method used by the company, capital gains/loss taxation, cost recovery, deferred tax and income tax expense. income. At the end, we gave the conclusion from the management's point of view and provided some suggestions to the company. Company Profile: Umicore NV is one of those multinational companies dealing with materials technology, particularly in metals and mining. It was founded in 1989 and is headquartered in Brussels, Belgium. The company's CEO is Marc Grynberg and Thomas Leysen is its president. The company is structured around four main business groups: Catalysis, Energy Materials, Performance Materials and recycling. But it is now moving more towards the recycling of non-ferrous metals as well as the manufacture of specialized metallic and non-metallic products. Mining, once the lifeblood of the company, now plays no direct role in the business. Umicore is the world's largest recycler of precious metals. Battery recycling is also a business unit that falls under recycling and focuses exclusively on recycling used rechargeable batteries from laptops, hybrid vehicles, mobile phones, etc. The majority of the company's revenue comes from its Catalysis business unit and is divided into two divisions which are automotive catalysts and precious metals chemistry. Recently the company acquired...... middle of paper ...... all should list the future tax cost of the deferred gain from the transaction as a liability. The company must record the difference between the gain on assets and the future tax liability as an increase in net worth. ImportanceIt is crucial for the company to recognize the deferred tax liability from the deferred gain. if you ignore deferred gains and recognize the increase in total asset value more than the value of the bet, the company will overstate its balance sheet. Conclusion Umicore's turnover increased by 4.7% and net financial debt decreased by 11%. So, if we look at the financial statements, the company is performing well, but we should also consider the other factors. After taking into account deferred tax assets and liabilities, shareholders' equity amounts to 49% while liabilities amount to 51%. So investors will not invest in the company. Deferred tax assets and liabilities therefore play an important role.