In pushing for comprehensive allocation of income taxes, FASB argued that

Question

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FASB argued that income tax expense should be based on all temporary differences, which are differences between the tax basis of an asset or liability and its reported amount in the financial statements that will ultimately reverse and affect taxable income in future periods. Including these in the calculation of income tax expense would provide a more accurate reflection of the company's financial position and performance.

In Pushing for Comprehensive Allocation of Income Taxes, FASB Argued