Summary of Statement No. 31
Summary of Statement No. 31
Accounting for Tax Benefits Related to U.K. Tax Legislation Concerning Stock Relief (Issued 9/79)
Summary
This Statement specifies how an enterprise subject to United
States generally accepted accounting principles should account for
income taxes relating to recent changes in the United Kingdom tax
law concerning "stock relief," which permits an income tax
deduction for increases in inventory. The changes have modified the
provisions for recapture of the tax benefit of that deduction. The
Statement requires that certain previously deferred tax benefits
related to "stock relief" be recognized as of July 26, 1979 when
the legislation was enacted. Other tax benefits related to "stock
relief" should be deferred unless it is probable that those tax
benefits will not be recaptured.