QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS
65. Which of the following statements most accurately describes a valuation allowance for deferred
taxes? A valuation allowance is required under:
A. IFRS on revaluation of capital assets.
B. U.S. GAAP if there is doubt about recovering a deferred tax asset.
C. both IFRS and U.S. GAAP on tax differences arising from the translation of foreign operations.