标题: About Deferred Tax assets and Valuation allowance [打印本页] 作者: wonderfuldream 时间: 2011-7-11 18:37 标题: About Deferred Tax assets and Valuation allowance
Hi,
After reading session 9 about deferred taxes, i have read a line that whether a firm is able to use its deferred tax assets depends if the taxable income is sufficient.
Lets say if a firm is making loss, will the firm use valuation allowance to reduce it deferred tax assets?
thanks作者: suyash1989 时间: 2011-7-11 18:37
Well there needs to be a reasonable expectation of future profits in order to take advantage of previous losses. A real life example of this is Mayo vs. Citi right now.作者: amqata 时间: 2011-7-11 18:37
its worth to remember that
FASB govern the rule based principle which limits the free space for interpret ist like YES or NO while IASB gives more freedom of choice
Read practice and read...作者: hariRaj 时间: 2011-7-11 18:37
I think it depends on whether the company expects to earn profits in the future.
