For classification purposes, a valuation allowance:

Question

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A valuation allowance is a contra account to the deferred tax asset and is classified as noncurrent. It is not allocated proportionately between the deferred tax asset and deferred tax liabilities, nor is it added to the deferred tax asset and classified as current. It is recognized to reduce the carrying amount of the deferred tax asset when it is more likely than not that some or all of the deferred tax asset will not be realized.

For Classification Purposes, a Valuation Allowance