Under APB Opinion No. 23, parent-level income taxes are recorded on a foreign subsidiary's earnings regardless of whether the income taxes are expected to eventually be paid.

Question

Quizplus · Accepted Answer

APB Opinion No. 23 allows for the deferral of income taxes on the earnings of a foreign subsidiary as long as those earnings are intended to be indefinitely reinvested in the foreign subsidiary and not repatriated to the parent company.