Under U.S. GAAP, when a firm determines that all or a portion of a deferred tax asset is not realizable, they will use a valuation allowance to reduce the balance.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, a valuation allowance is used to reduce the carrying amount of a deferred tax asset if it is more likely than not that some or all of the asset will not be realized.

Under US GAAP, When a Firm Determines That All or a a Portion