Reference no: EM133115688

Question - Income Tax Allocation is an integral part of US GAAP. The applications of intra-period income tax allocation (within a period) and interperiod tax allocation (among periods) are both required.

Explain the need for intraperiod tax allocation:

Accountants who favor interperiod income tax allocation argue that income taxes are an expense rather than a distribution of earnings. Explain the significance of this argument.

Discuss the nature of the deferred income tax accounts and possible classifications in a company's balance sheet. Please include references to avoid plagiarism.