What are the six exceptions to the basic requirements of ASC 740? Please briefly describe each of...

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What are the six exceptions to the basic requirements of ASC 740? Please briefly describe each of the exceptions.

David · Accepted Answer

The financial accounting Standard Board (FASB) is a non-profit organization 
with the primary purpose to establish and improve GAAP (Generally Accepted 
Accounting Principles) within Unites States. 
ASC 740 or Accounting Standards Codification measures the tax positions 
taken or expected that directly or indirectly accounts for amounts represented in 
a financial statement. 
Following are the 6 exceptions to ASC 740: 
1. Deferred tax liability is not recognized for the following types of 
temporary differences unless it becomes apparent that those temporary 
differences will reverse in the foreseeable future: 
 An excess of the amount for financial reporting over the tax basis 
of an investment in a foreign subsidiary or a foreign corporate joint 
venture that is essentially permanent in duration.

What are the six exceptions to the basic requirements of ASC 740? Please briefly describe each of the exceptions.

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