115k views
0 votes
What is meant by "tax allocation within a period"? What is the justification for such practices?

User Bassim
by
5.8k points

1 Answer

4 votes

Answer:

Tax allocation within a period is the practice of allocating the income tax for a period to such items as income before extraordinary items, extraordinary items and period adjustments.

Step-by-step explanation:

The justification for tax allocation within a period is to produce financial statements which disclose an appropriate relationship of the different taxable income.

User Amrrs
by
5.5k points