The FASB requires that deferred tax assets and liabilities not be discounted. In at least three...

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three paragraphs, support one of the positions presented below. You should use references to reference material, as necessary.

In 3 paragraphs

Position: Present arguments against discounting deferred tax liabilities.

Expert Solution

The reliable determination of deferred tax assets and liabilities on a discounted basis requires detailed scheduling of the timing of the reversal of each temporary difference. In many cases such scheduling is impracticable or highly complex. Therefore, it is inappropriate to require discounting of deferred tax assets and liabilities. To permit, but not to require, discounting would result in deferred tax assets and liabilities which would not be comparable between entities. Therefore, this Standard does not require or permit the discounting of deferred tax assets and liabilities.

The lack of discounting will make tax discounting more valuable. Assuming that the market accepts this valuation it will mean increased effort toward tax deferral and possibly increased investment rates. Corporations will hold appreciating assets for longer periods to defer taxes, and will forgo some short term gains in favor of increasing the expected future tax defferal items on the balance sheet.

ekkarill92 answered 2 years ago

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three...

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three paragraphs, support the position presented below. You should use references to reference material, as necessary. Position: Present arguments against discounting deferred tax liabilities.

Is it possible that deferred tax assets greater than deferred tax liabilities? In that case, what...

Is it possible that deferred tax assets greater than deferred tax liabilities? In that case, what will be the treatment for the net amount when they offset against each other?

a.discuss the criteria for recognizing deferred tax assets and deferred tax liabilities under the provisions of...

a.discuss the criteria for recognizing deferred tax assets and deferred tax liabilities under the provisions of fasb asc 740 b. compare and contrast the asset-liability method and the deferred method

Contrast deferred tax liabilities and deferred tax assets. Give examples of each. Also respond to another...

Contrast deferred tax liabilities and deferred tax assets. Give examples of each. Also respond to another student's post. Write two to three large paragraphs

why deferred tax assets/liabilities are reported in the balance sheet??

which of the following statements concerning the classification of deferred tax assets and liabilities is true

How does a company disclose deferred tax assets and liabilities on its balance sheet?

Meaning to an analyst of increases in deferred tax liabilities

4. Which of the following is true with respect to deferred tax assets and deferred tax...

4. Which of the following is true with respect to deferred tax assets and deferred tax liabilities a. A permanent difference is always recorded as a deferred tax asset b. A valuation allowance is appropriate only when it is more likely than not that deferred tax asset will not be recognized c. All deferred tax assets and deferred tax liabilities are reported as noncurrent in the balance sheet d. A net operating loss gives rise to a deferred tax liability

Accoridng to the FASB, The assets, liabilities and operations of a foreign entity shall be measured...

Accoridng to the FASB, The assets, liabilities and operations of a foreign entity shall be measured using the functional currency of that entity. Should firms use a single functional currency to measure international operations? What are the benefits and problems with this? Argue for both sides

Question

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three...

Solutions

Expert Solution

Related Solutions

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three...

Is it possible that deferred tax assets greater than deferred tax liabilities? In that case, what...

a.discuss the criteria for recognizing deferred tax assets and deferred tax liabilities under the provisions of...

Contrast deferred tax liabilities and deferred tax assets. Give examples of each. Also respond to another...

why deferred tax assets/liabilities are reported in the balance sheet??

which of the following statements concerning the classification of deferred tax assets and liabilities is true

How does a company disclose deferred tax assets and liabilities on its balance sheet?

Meaning to an analyst of increases in deferred tax liabilities

4. Which of the following is true with respect to deferred tax assets and deferred tax...

Accoridng to the FASB, The assets, liabilities and operations of a foreign entity shall be measured...