A major conceptual issue associated with interperiod tax allocation is the issue of discounting the deferred tax amount on the balance sheet to reflect its present value.Current generally accepted accounting principles do not allow the discounting of deferred taxes.Some in the profession have suggested,however,that the FASB should reconsider its position on discounting in light of the Board's current project on present value-based measurements in accounting.
Provide arguments for and against the discounting of deferred income taxes.

Question

Quizplus · Accepted Answer

The Answer of A major conceptual issue associated with interperiod tax allocation is the issue of discounting the deferred tax amount on the balance sheet to reflect its present value.Current generally accepted accounting principles do not allow the discounting of deferred taxes.Some in the profession have suggested,however,that the FASB should reconsider its position on discounting in light of the Board's current project on present value-based measurements in accounting.
Provide arguments for and against the discounting of deferred income taxes.

A Major Conceptual Issue Associated with Interperiod Tax Allocation Is