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 managerial decision making and financial statement presentation. The case study starts with the company profile and tells what the company is and how it is currently performing. By reading deeper you will learn about the tax depreciation method used by the company, capital gains/losses taxation, cost recovery, deferred taxes and income taxes. At the end we gave the conclusion from the managers' point of view and provided some suggestions to the company. Company Profile: Umicore NV is among those multinational companies dealing with materials technology, especially in metals and mining. It was found in the year 1989 and is based in Brussels, Belgium. The company's CEO is Marc Grynberg and Thomas Leysen is the president. The company focuses on four main business groups: Catalysis, Energy Materials, High Performance Materials and Recycling. But now it is more focused on the recycling of non-ferrous metals and also on the manufacture of specialized metal and non-metal products. Mining, which was once the lifeblood of the company, now no longer plays any direct role in the business. Umicore is the world's largest recycler of precious metals. Battery recycling is also a business unit that comes under recycling and focuses exclusively on recycling spent rechargeable batteries from laptops, hybrid vehicles, mobile phones, etc. The majority of the company's revenue comes from the Catalysis business unit and is divided into two divisions which are automotive catalysts and precious metal chemistry. The company recently acquired...... middle of paper ......ny is expected to list the future tax cost of the deferred gain from the transaction as a liability. The company should record the difference between equity profit and future tax liability as an increase in equity. Importance It is critical for the company to recognize the delayed tax liability of deferred profit. If you ignore deferred earnings and recognize an increase in the value of the entire asset as if you were taking a gamble, the company will overstate its balance sheet. Conclusion Umicore's revenues increased by 4.7% and net financial debt decreased by 11%. So, if we look at the financial statement, the company is doing well, but we should also consider the other factors. After including deferred tax assets and liabilities, net worth is 49% while liabilities are 51%. So investors will not invest in the company. Therefore deferred tax assets and liabilities play an important role.