Comprehensive Tax Allocation

AAA

DEFINITION of 'Comprehensive Tax Allocation'

An accounting term that describes a form of "interperiod" tax allocation, a method of income analysis. It signifies a means of quantifying the net effect of taxation upon all book income transactions within a given period, such as a fiscal year, measuring after-tax income.

INVESTOPEDIA EXPLAINS 'Comprehensive Tax Allocation'

Comprehensive tax allocation does not take into account whether the period being analyzed is entirely within a single calendar or fiscal tax year. For example, if a company wanted to know what its after-tax income was for a certain period, such as from August of one year to March of the following year, then comprehensive tax allocation would be used to see what the effects of taxation are on the book income received during that period.

RELATED TERMS
  1. Tax Schedule

    A rate sheet used by individual taxpayers to determine their ...
  2. Accounting Method

    The method by which income and expenses are reported for taxation ...
  3. Accounting

    The systematic and comprehensive recording of financial transactions ...
  4. Tax Liability

    The total amount of tax that an entity is legally obligated to ...
  5. Taxable Income

    The amount of income that is used to calculate an individual's ...
  6. Accident Year Experience

    Premiums earned and losses incurred during a specific period ...
Related Articles
  1. Taxes

    After-Tax Balance Rules For Retirement Accounts

    Accumulating post-tax assets can work to your advantage. Find out how.
  2. Entrepreneurship

    Tax Credit For Plan Expenses Incurred By Small Businesses

    Determine whether your business is eligible to claim a tax credit for establishing a retirement plan.
  3. Retirement

    Crunch Numbers To Find The Ideal Accountant

    The phone book isn't the best place to start your search. Learn some shopping tips here.
  4. Professionals

    Financial History: The Rise Of Modern Accounting

    Find out how these two have grown hand-in-hand throughout our modern history.
  5. Fundamental Analysis

    What's a Tangible Asset?

    Tangible assets are property owned by a business that can be touched -- they physically exist. Examples include furniture and fixtures, computer hardware, delivery equipment, leasehold improvements ...
  6. Fundamental Analysis

    Cash Flow From Operating Activities

    Cash flow from operating activities is a section of the Statement of Cash Flows that is included in a company’s financial statements after the balance sheet and income statements.
  7. Fundamental Analysis

    What are the components of shareholders' equity?

    Understanding company valuation figures, such as shareholders' equity, can be a powerful tool in assessing the financial strength of a business.
  8. Fundamental Analysis

    What is the difference between the acid test ratio and working capital ratio?

    Using liquidity ratios to determine the financial stability of a company is an important tool to accounting professionals and investors.
  9. Fundamental Analysis

    What are some examples of return on investment capital?

    Read about some basic examples of return on investment capital for publicly traded companies and companies that have a handful of investors.
  10. Bonds & Fixed Income

    What is the difference between the yield of stock and the yield of a bond?

    Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond investments.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center