Under GAAP, companies must account for marketable securities at fair value. If the values change during the

Question:

Under GAAP, companies must account for marketable securities at fair value. If the values change during the year, the companies report gains or losses. However, the U.S. income tax rules use historical cost to value investments, and companies do not report gains or losses until they sell the securities. Why would the tax authorities not want to use a fair value approach?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: