Defend the position of partial allocation of income taxes:
Another argument against allocation of income tax “is that all timing differences do not reverse and their tax effect does not result in a payment of the deferred tax liability” (Wong, Wong, & Naiker, 2011, p. 1088). For advocates of partial allocation of income tax, these types of deferred tax liabilities would be ignored and only the portion of comprehensive tax liability that was expected to result in cash outflows would be recognized. Again, this is not a conservative approach because firm management is given leeway in choosing which liabilities to avoid and which to recognize.
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