b. Intel have reported deferred tax assets and liabilities in the same manner using international n standards as with U.S. standards? If not, how would the reporting differ? c. Intel reports a valuation allowance that reduces its net deferred tax asset position using U.S. standards. i. Would it do so under international standards? ii. If not would net deferred taxes be the same? If yes, why? If not, why not? iii. Would information be gained or lost under the international approach versus the U.S. approach? d. Does the international tax treatment in relation to goodwill mirror the U.S. treatment? e. Does the international tax treatment in relation to indefinitely reinvested earnings mirror the U.S. treatment? f. What is different between the international treatments of uncertain tax positions relative to the U.S. treatment under FIN 48? Which approach provides financial statement users with more useful information? Which results in a superior measure of the most likely obligation in relation to uncertain tax positions? 2. Part A: Assuming accounting in accordance with FASB standards Facts and circumstances: On 12/31/2011 Company US has an equity security it accounts for as an available for sale security with an historical cost of $110. On that day the market value of the equity security was $100 and Company US marked the security to market value. In financial statements prepared on 12/31/2011 Company US had the following balances in relation to the equity security: Equity security asset $100 Deferred tax asset $3 AOCI—Equity security $7 On 1/1/2012 Company US sold the equity security for $100. Make all journal entries necessary to record this and its tax consequences.
b. Intel have reported deferred tax assets and liabilities in the same manner using international n standards as with U.S. standards? If not, how would the reporting differ? c. Intel reports a valuation allowance that reduces its net deferred tax asset position using U.S. standards. i. Would it do so under international standards? ii. If not would net deferred taxes be the same? If yes, why? If not, why not? iii. Would information be gained or lost under the international approach versus the U.S. approach? d. Does the international tax treatment in relation to goodwill mirror the U.S. treatment? e. Does the international tax treatment in relation to indefinitely reinvested earnings mirror the U.S. treatment? f. What is different between the international treatments of uncertain tax positions relative to the U.S. treatment under FIN 48? Which approach provides financial statement users with more useful information? Which results in a superior measure of the most likely obligation in relation to uncertain tax positions? 2. Part A: Assuming accounting in accordance with FASB standards Facts and circumstances: On 12/31/2011 Company US has an equity security it accounts for as an available for sale security with an historical cost of $110. On that day the market value of the equity security was $100 and Company US marked the security to market value. In financial statements prepared on 12/31/2011 Company US had the following balances in relation to the equity security: Equity security asset $100 Deferred tax asset $3 AOCI—Equity security $7 On 1/1/2012 Company US sold the equity security for $100. Make all journal entries necessary to record this and its tax consequences.