Gladstone Land Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2013

Effect of Adjustments to Revise Balance Sheet

The following are selected line items from our balance sheet as of December 31, 2012, illustrating the effect of the adjustments to revise the balance sheet:


	Consolidated Balance Sheet as of December 31, 2012
	As Previously Reported			Adjustment			As Revised
Other assets⁽¹⁾	$	285,521		$	484,947		$	770,468
Total assets		40,500,901			484,947			40,985,848
Deferred tax liability		(258,729	)		(484,947	)		(743,676	)
Total liabilities		(32,364,175	)		(484,947	)		(32,849,122	)

⁽¹⁾	As previously reported, Other assets included $234,891 of income taxes receivable as of December 31, 2012.

Delineates Current and Deferred Portions of Income Tax Provision

In addition, the footnote disclosure which delineates the current and deferred portions of the income tax provision was impacted as follows:


	For the Year Ended December 31, 2012
	As Previously Reported		Adjustment			As Revised
Current portion	$	216,591	$	(484,947	)	$	(268,356	)
Deferred portion		83,728		484,947			568,675
Total income taxes		300,319		—			300,319

Reconciliation between United States, or U.S, Statutory Federal Income Tax Rate and Effective Income Tax Rate

A reconciliation between the U.S., statutory federal income tax rate and our effective income tax rate for the six months ended June 30, 2013 and 2012 is provided in the following table:


	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012⁽¹⁾
U.S. statutory federal income tax rate		34.0	%		34.0	%
State taxes, net of U.S. federal income tax benefit⁽²⁾		23.4	%		10.2	%
Other adjustments		0.3	%		1.6	%

Effective tax rate		57.7	%		45.8	%

(1)	Based on the effective tax rate for the year ended December 31, 2011, as that rate represents our best estimate of the effective tax rate in effect as of June 30, 2012, based on the information available at the time.

(2)

From 2010 to 2012, California state tax returns were filed on a unitary basis with our Adviser. In 2011, we began filing state tax returns in Florida, and starting in 2013, we will also begin filing state tax returns in Michigan and Oregon. The overall state tax rate is higher due to the deferred intercompany gain mentioned above, which is a fixed amount due to the state of California and is not based on the amount of income apportioned to the state.