ACC FARS_Chapter_19

ACC FARS_Chapter_19 - Lai 1 Tiffany Lai Ying Ping Professor...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lai 1 Tiffany Lai Ying Ping Professor Reilly ACC202 3 April 2007 FARS Assignment - Chapter 19 (a) All available evidence, both positive and negative, is considered to determine  whether, based on the weight of that evidence, a valuation allowance is needed for  some portion or all of a deferred tax asset. Judgment must be used in considering  the relative impact of negative and positive evidence. The weight given to the  potential effect of negative and positive evidence should be commensurate with  the extent to which it can be objectively verified. The more negative evidence that  exists (a) the more positive evidence is necessary and (b) the more difficult it is to  support a conclusion that a valuation allowance is not needed. [FASB - Financial Accounting Standards Board Statements of Financial Accounting Standards (SFAS)\1. Original Pronouncements\e. Nos. 101 through 125 No. 109: Accounting for Income Taxes SUMMARY MEASUREMENT OF A DEFERRED TAX LIABILITY OR ASSET] (b) All available evidence, both positive and negative, should be considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. Information about an enterprise's current financial position and its results of operations for the current and preceding years ordinarily is readily available. That historical information is supplemented by all currently available information about future years. Sometimes, however, historical information may
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/20/2008 for the course ACC 202 taught by Professor Reilly during the Spring '08 term at Albright College.

Page1 / 4

ACC FARS_Chapter_19 - Lai 1 Tiffany Lai Ying Ping Professor...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online