Zimt ag presents its financial statements in accordance, Ask an Expert

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Zimt AG presents its financial statements in accordance with US GAAP. In 2007, Zimt discloses a valuation allowance of $1,101 against total deferred tax assets of $19,201. In 2006, Zimt disclosed a valuation allowance of $1,325 against total deferred tax assets of $17,325. The change in the valuation allowance most likely indicates that Zimt's:

A. deferred tax liabilities were reduced in 2007.
B. expectations of future earning power has increased.
C. expectations of future earning power has decreased.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91769315

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