First Scenario:
When a company records a deferred tax asset, it may need to also report a valuation allowance if it is “more likely than nor that some portion or all of the deferred tax asset will not be realized. Find the relevant authoritative literature on disclosure requirements pertaining to how a firm should determine whether a valuation allowance for deferred tax assets is needed. Include the specific citation that describes the guidelines for determining the disclosure requirements. Concisely describe the guidelines, then find a company 10K (you may go to investor relations at a company’s website, or you may use www.sec.gov) that includes a note to its financial statements regarding deferred tax assets valuation and use this as a brief example in your case. Please include a copy of this company’s income taxes footnote as an appendix to your case.
Required: Cases should be 2-3 pages plus appendices. The first paragraph describes which scenario you chose and the company that you chose The following paragraphs include your codification citation(s) and your explanations. Appendices will include copies of the required financial statements and/or notes to the financial statements as described in the scenario that you chose Please use 12 point Times New Roman, and SINGLE SPACE. No cover/title page is needed. If submitting as a group, all group members must upload the case so that I can provide a grade and feedback to all.

Sample Solution

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