Does US GAAP allow general provisions?

Question

I've been informed that IFRS doesn't allows general provisions nowdays. But what about US GAAP? Specifically provisons for corporate tax expense and defferred tax liability?

Answer 1

Both US GAAP & IFRS require provisions for corporate income tax and deferred tax. Income / deferred tax is governed by IAS 12 under IFRS. Under US GAAP it is ASC 740 which governs income / deferred tax.

Check out following resources for more details on the rules & principles used by IAS 12 & ASC 740

http://mcgladrey.***/pdf/ifrs_income_taxes.pdf
http://***.pwc.***/en_US/us/cfodirect/assets/pdf/insight/5190.pdf
http://***.pwc.***/gx/en/mining/school-of-mines/2012/pwc-current-issues-in-income-tax-accounting-us-gaap-and-ifrs-pt-1.pdf