acc 311 paper 2 - Hanrahan 1 In my previous paper, I...

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Hanrahan 1 In my previous paper, I discussed the treatment of income taxes in the event that net operating loss was to occur. When a company incurs a net operating loss, they are able to utilize the carryback and carryforward rules. Generally, companies are able to carryback a loss for two years creating an immediate tax refund. Or they may elect to carryforward the loss for up to 20 years into the future, creating a deferred tax asset that will be deductable in upcoming years. In some instances, the company may carryback part of the net operating loss, and also carry the remainded forward. In this paper, I will show how three separate companies have decided to use the carryback and carryforward rules pertaining to their individual net operating losses. Companies utilize their net operating loss in a variety of ways. In the remainder of this paper, I will explore two American companies, and one European company and discover how they decided to make use of their net operating loss. This will also make the differences between U.S. GAAP and IFRS clear pertaining to net operating losses. Supreme Industries Incorporated is based out of a small town in Indiana, and is one of the nation’s leading manufacturer in specialized commercial vehicles. According to Supreme Industry’s 10K report, they have incurred a net operating loss since 2007. Considering that the company has had a net operating loss for the three past years,
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acc 311 paper 2 - Hanrahan 1 In my previous paper, I...

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