What is the principal objective of the statement of financial position approach to income tax allocation?

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Quizplus · Accepted Answer

The principal objective of the statement of financial position approach to income tax allocation is to ensure that the deferred tax liability and the deferred tax asset are measured reliably, as this approach takes into account the temporary differences between accounting and tax bases, and uses the balance sheet to recognize the deferred tax assets and liabilities that result from those temporary differences. This reliable measurement ultimately leads to a more accurate presentation of financial statements.

What Is the Principal Objective of the Statement of Financial