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This draft Opinion proposes that differences between taxable income and pretax accounting income relating to undistributed earnings of subsidiaries, Domestic International Sales Corporations, corporate joint ventures, general reserves of savings and loan associations, and policyholders' surplus of stock life insurance companies are of such a nature that tax allocation would not ordinarily be required. However, earnings of a non-subsidiary investee taken up under the equity method (APB Opinion No. 18) would be considered a timing difference and tax allocation would be required under the provisions of APB Opinion No. 11.
Income tax -- United States -- Accounting; Corporations -- United States -- Accounting
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Principles Board, "Proposed APB opinion : Accounting for income taxes-- special areas;Accounting for income taxes-- special areas; Exposure draft (American Institute of Certified Public Accountants), 1972, Jan. 4" (1972). Statements of Position. 347.