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Untaxed Foreign Earnings—Keep Growing!
Author(s) -
Ciesielski Jack T.,
Weirich Thomas R.
Publication year - 2016
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22210
Subject(s) - transparency (behavior) , earnings , shareholder , accounting , balance (ability) , business , economics , finance , corporate governance , political science , law , medicine , physical medicine and rehabilitation
Focusing on a lack of transparency related to untaxed foreign earnings (UFEs), this article highlights the growing balance in accumulated UFEs by the corporate sector. The authors also explain where the concept of “indefinite reinvestment assumption” comes from that has resulted in UFEs. The article further discusses that these UFEs are not really part of an entity's real earnings that are available to shareholders by discussing Schrodinger's paradox. © 2017 Wiley Periodicals, Inc.