Intraperiod tax allocation
A) is used to allocate a company's total income tax expense to the components of net income and comprehensive income.
B) involves temporary timing) differences between financial and taxable incomes.
C) requires allocation of deferred taxes across accounting periods.
D) results from differences between tax regulations and the principles followed to determine financial income.

Question

Quizplus · Accepted Answer

Intraperiod tax allocation is used to allocate a company's total income tax expense among the various components of net income and other comprehensive income. This ensures that the income tax expense shown in the income statement reflects the tax effects of items that are included in net income, and other taxes related to items that are directly recorded in equity (as part of comprehensive income) are also appropriately allocated.

Intraperiod Tax Allocation