单选题

Which of the following statements most accurately describes a valuation allowance for deferred taxes? A valuation allowance is required under:

A、 IFRS on revaluation of capital assets
B、 U.S. GAAP if there is doubt about recovering a deferred tax asset.
C、 both IFRS and U.S. GAAP on tax differences arising from the translation of foreign operations.

【正确答案】 B

【答案解析】

A valuation allowance is required under U.S. GAAP if there is doubt about whether a deferred tax asset will be recovered. Under IFRS the deferred tax asset is written down directly.