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Unformatted text preview: m e taxes and w hen ap p rop riate, deferred tax assets and
liabilities are record ed w ith resp ect to temp orary d ifferences in the accou nting treatment of items for financial
reporting p u rp oses and for income tax purposes. Where, based on the w eight of all available evid ence, it is more likely
than not that some amou nt of recorded d eferred tax assets w ill not be realized, a valu ation allow ance is established for
that amou nt that, in management’s jud gment, is sufficient to redu ce the d eferred tax asset to an amount that is more
likely than not to be realized .
10 I ncome Taxes 10 I Ju ly 2006, the FASB issued guid ance w hich clarifies the accounting for income taxes by p rescribing a
minimum p robability threshold that a tax position mu st m eet before a financial statement benefit is recognized. The
Income From Continuing Operations tax p osition that is more likely than not to be sustained u pon examination by the 2007
minimum threshold is d efined as a Before Income
Taxes and taxing au thority,
ap plicableMinority Interests inclu d ing resolution of any related ap p eals or litigation processes, based on the technical
Income From Continuing Operations Before Income
Dom esticthe p osition. The tax
meritsand (includ ing U.S. exp or...
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This homework help was uploaded on 03/27/2014 for the course ACCOUNTING 151 taught by Professor Chinn during the Spring '12 term at Lehigh University .
- Spring '12