jim8z3

Miss*Yiota Wrote:
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> the carrying forward period are the number of
> period you are still entitled to use any tax
> advantage such as the DTA. You can't carry on your
> DTA indefinitely, that what i understood. Let say
> this time is limited to 3 years. So if for any
> reason you can't use your DTA, and you are in year
> 2, you'll account for a valuation allowance. If
> somehow your time is extend to 4 more years, then
> you'll decrease your valuation allowance since the
> probablity of using it is getting high again
>
> that what i understood

I don't disagree with this at all.. This makes sense.. But my question is whether valuation allowance decreases when tax rate decreases.