The Taxpayer Should Use ASC 740-30 (APB 23) Income Deferral

question 104

True/False

The taxpayer should use ASC 740-30 (APB 23) income deferral only when the tax rates that apply to the subsidiary are less than those of the applicable U.S. income tax rate.

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Definitions:

Unfunded Pension Liability

A pension plan's financial shortfall when the projected retirement benefits obligations exceed the current assets available to fund them.

Long-Term Liability

A financial obligation of a company that is due more than one year in the future.

Current Liability

Financial obligations or debts that a company is expected to pay within one year, including accounts payable, wages, and short-term loans.

Internal Controls

Methods and policies established by a company to guarantee the accuracy of finance and accounting data, encourage responsibility, and deter deceptive practices.