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directly related to research and development support.
Website Development Costs — Dell expenses, as incurred, the costs of maintenance and minor enhancements to the features and functionality of its
Income Taxes — Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and
liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Dell calculates a provision for income taxes
using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising
from the different treatment of items for tax and accounting purposes. In determining the future tax consequences of events that have been
recognized in the financial statements or tax returns, judgment and interpretation of statutes are required. Additionally, Dell uses tax planning
strategies as a part of its global tax compliance program. Judgments and interpretation of statutes are inherent in this process.
The accounting guidance for uncertainties in income tax prescribes a comprehensive model for the financial statement recognition, measurement,
presentation, and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. Dell recognizes a tax benefit from an
uncertain tax position in the financial statements only when it is more likely than not that the position will be sustained upon examination, including
resolution of any related appeals or litigation processes, based on the technical merits and a consideration of the relevant taxing authority's
administrative practices and precedents.
Comprehensive Income — Dell's comprehensive income is comprised of net income, unrealized gains and losses on marketable securities classified
as available-for-sale, foreign currency translation adjustments, and unrealized gains and losses on derivative financial instruments related to foreign
Earnings Per Share — Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding, and is calculated by divi...
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This document was uploaded on 02/22/2014 for the course ACCT 6330 at University of Texas at Dallas, Richardson.
- Spring '11