Judicialrestraint: Deferred tax asset- If you show as an Asset, taxes that you will not have to pay and then have no earnings to support that position down the road, you have overstated your assets on the balance sheet. Therefore they have set up an offset (valuation account). The valuation account in effect zeros out the asset and nullifies the whole thing. Not sure what the criteria is without reading the ruling. I have not looked at the financials you refer to, just using my long lost accounting memory.
BTW - I don't agree with showing the tax deferral as an asset. I think footnotes are better, but most people never read them.
Considering how long I have been away from accounting, double checking this would be a good idea. <g>
Signatures are so yesterday!
