Under GAAP, companies must account for marketable securities at fair value. If the values change during the
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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?
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Introductory Accounting A Measurement Approach For Managers
ISBN: 9781138956216
1st Edition
Authors: Daniel P. Tinkelman
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