Question

Why would companies choose a carry-back of net operating loss instead of a carry-forward? explain Why...

Why would companies choose a carry-back of net operating loss instead of a carry-forward? explain

Why are there differences in reporting amounts for deferred taxes among the most frequent between IFRS and US GAAP? explain

Homework Answers

Answer #1
  1. There is no such provision of carry backward of losses now, it is a case prior to 2017 and is in effect only for 2 years. The immediate cancellation of it is because the IRS has observed many people misusing the provision.
  2. As you all know already IFRS is global reporting standards, US GAAP are the standards applicable only in US. US instead of adopting IFRS directly have adopted US GAAP. Your question is why are there differences between these. If there are no differences why would there exists two of them. I will explain you why the difference exists. IFRS are framed in such a way to cope with whole world. But US economic and accounting conditions will definitely differ with the world. So US came up with US GAAP's that best suits it's economic conditions.
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