Question: 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

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.

Required:

1. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that describes the guidelines for determining the disclosure requirements pertaining to how a firm should determine whether a valuation allowance for deferred tax assets is needed?

2. What are the guidelines?

Step by Step Solution

★★★★★

3.46 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 The specific ninedigit Codification citation is 74010503 2 According to the FASB Accounting Standa... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

Access the FASB Accounting Standards Codification at the FASB website (asc.fash.org). Determine the specific citation for each of the following items: 1. What is the balance sheet classification for...

Access the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Determine the specific citation for each of the following items: 1. The calculation of the weighted average...

Access the FASB Accounting Standards Codification at the FASB website (asc.fash.org). Required: Determine the specific citation for accounting for each of the following items: 1. What alternative...

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....

specific citation E 16-12 FASB codification research; valuation allowance When a company records a deferred tax asset, it may need to also report a valuation allowance if it is "more likely than not"...

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...

n 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....

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....

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....

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....

Explain how populations and variables differ.

1. List the ways that a companys decision maker can adjust for total project risk in capital budgeting. 2. List the steps that a firm uses in the capital budgeting process.

1 9 Homework ( i ) Soved Help Save 8 Exit Required: Fill in the blanks: Note: Round "Return on sales", "Asset turnover" and "Return on investment" answers to 2 decimal places. \ table [ [ , Division...

15 How can a DMO encourage the adoption of a sustainable tourism development approach?

DepreciationStrike, Units-of-Production, Obsolescence Presented below and are three different and unrelated situations involving depreciation accounting. Answer the question(s) at the end of each...

Depreciation Concepts As a cost accountant for San Francisco Cannery, you have been approached by Phil Perriman, canning room supervisor, about the 2010 costs charged to his department. In...

Depreciation Choice Jerry Prior, Beeler Corporations controller is concerned that net income may be lower this year. He is afraid upper-level management might recommend cost reductions by lying off...

Problem 10-13 Consider the following data for three different companies: ($000 Omitted) Owens Arrow Alpha Net cash provided (used) by: Operating activities $(2,000) $2,700 $(3,000) Investing...

1. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Andalusian Limited (AL) can borrow funds at an interest rate of 10.20% for a...

In its 2011 income statement, Jefferson Inc. repeated net income of $1,430 and depreciation expense of $230. On its 2012 income statement, the company reported net income of $2,310 and depreciation...