Refer to Exhibit 15.8. Under SFAS No. 96, there was a conservative recognition of deferred tax assets.

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Refer to Exhibit 15.8. Under SFAS No. 96, there was a “conservative” recognition of deferred tax assets. As a result, the $135 deferred tax asset in 1997 needs to be “carried back” to 1994. Why is this result not conservative?

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Accounting Theory Conceptual Issues in a Political and Economic Environment

ISBN: 978-1412991698

8th edition

Authors: Harry Wolk, James Dodd, John Rozycki

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Question Posted: Feb 12, 2016 06:28 AM

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Refer to Exhibit 15.8. Under SFAS No. 96, there was a conservative recognition of deferred tax assets.

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As a result the 135 deferred tax asset in 19...View the full answer

Accounting Theory Conceptual Issues in a Political and Economic Environment

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