Valuation allowance

In accounting, valuation allowance means the reduction of a deferred tax asset to the amount more likely than not (over 50%) to be realized.

Layer: Lexicon
Defined in: Lexicon
Nearby: 4

Authority

This definition follows ASC 740-10-30-5.

Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.

What it is not called

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reserve

Nearby in the catalog

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6Statements

BalanceSheetAssets / liabilities / equity, with the balance check.

11Payables (AP)

2 of 2 builtFamily spec

12Close, controls & consolidation

FxGainLossPanelRealized and unrealized never combined.Spec

Terms this one depends on

Also in Tax

Work with this concept

The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.

Journal entry for an income tax provisionAt period-end, debit Income tax expense for the total provision, credit Income taxes payable for current tax, and credit (or debit) the Deferred tax asset for the change in deferred tax — for example, a net operating loss carryforward used this year.Entry

Defined in Lexicon. This page is generated from that document, so the two cannot disagree.

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