In accounting for multinational corporations,
A)SFAS 109 requires companies to include taxes on repatriation of foreign earnings as a deferred tax asset.
B)the deferral of foreign earnings is a temporary difference.
C)SFAS 109 allows the parent to exclude taxes on repatriated foreign earnings if they will not be repatriated in the foreseeable future.
D)a corporation with excess foreign tax credits will record a deferred tax liability.

Question

Quizplus · Accepted Answer

SFAS 109 allows companies to exclude taxes on repatriated foreign earnings if they assert that these earnings will be indefinitely reinvested outside the U.S., meaning they will not be repatriated in the foreseeable future.

In Accounting for Multinational Corporations