When a company records a deferred tax asset, it may need to also report a valuation allowance if it is “more likely than not” that some portion or all of the deferred tax asset will not be realized. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. Obtain the relevant authoritative literature on disclosure requirements pertaining to how a firm should determine whether a valuation allowance for deferred tax assets is needed using the FASB’s Codification Research System at the FASB website (www.fasb.org). What is the specific citation that describes the guidelines for determining the disclosure requirements? 2. What are the guidelines?

Question
Asked Jan 21, 2020
6 views

When a company records a deferred tax asset, it may need to also report a valuation allowance if it is “more likely than not” that some portion or all of the deferred tax asset will not be realized. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. Obtain the relevant authoritative literature on disclosure requirements pertaining to how a firm should determine whether a valuation allowance for deferred tax assets is needed using the FASB’s Codification Research System at the FASB website (www.fasb.org). What is the specific citation that describes the guidelines for determining the disclosure requirements? 2. What are the guidelines?

check_circle

Expert Answer

Step 1

1.

FASB ASC 740-10-30-17 citation named as “Income Taxes–Overall–Initial Measurement Establishment of a Valuation Allowance for Deferred Tax Assets–Establishment of ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer...

A: The overheads cost is the product of the machine hours and the overheads cost per machine hour. The ...

question_answer

Q: How do you figure the largest amount of cash dividend a company can pay based on the balance sheet f...

A: Balance sheet is the statement of the financial position prepared by the company at the end of the a...

question_answer

Q: “Relevant costs for pricing decisions are full costs of the product.” Do you agree? Explain.

A: Pricing Decisions:Pricing decisions are those decisions that are related to ascertain the price of a...

question_answer

Q: Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 13,120 miles f...

A: Calculate Marc's transportation expense deduction for the year under Actual cost method.

question_answer

Q: Four years after issue, debentures with a face value of$1,000,000 and book value of $960,000 are ten...

A: Discuss the propriety of the preceding accounting treatment. The method employed by the corporation ...

question_answer

Q: On March 1, 2016, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000...

A: Step 1: Record the journal entry for issuance of bonds on March 1, 2016:

question_answer

Q: Poehling Medical Center has a single operating room that is used by local physicians to perform surg...

A: Click to see the answer

question_answer

Q: The cost of materials transferred into the Rolling Department of Keystone Steel Company is $510,000 ...

A: Process costing is a system in which production cost are allocated to individual production stages u...

question_answer

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated otherwi...

A: Effective-interest amortization method:Effective-interest amortization method it is an amortization ...