ASC 740 is a GAAP codification that allows for deferring income taxes under special circumstances such as the advanced tickets sales for the International Speedway Corporation. This ASC 740 provision was designed to provide for accurate match of revenues to expenses. A number of companies now offer expert advice for corporations to defend their position for justifying the use of this GAAP codification, given that the IRS may question the practice for a particular company. In your opinion, would it be ethical to simply report income on earnings from ticket sales for an event that has not yet occurred? Why or why not?

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In the preparation of financial statement companies make use of Generally Accepted Accounting Principles GAAP However there are differences between GA... View the full answer