What does VA stand for?

It also had a non-cash charge related to the establishment of a valuation allowance against the company's net deferred tax assets totaling $61.

Deferred tax liabilities are a consideration in the analysis of whether to apply a valuation allowance because taxable temporary differences may be used as a source of taxable income to support the realization of deferred tax assets.

6 million for an increase in the valuation allowance against its deferred tax assets.

A valuation allowance account is then used to adjust investments in securities to market value on the balance sheet.

The Exposure Draft would provide that in determining whether a valuation allowance is necessary to reduce the carrying value of a deferred tax asset, all available evidence -- both positive and negative -- is to be taken into account.

Because First Regional currently has a valuation allowance offsetting its NOLs, the amount recovered through the extended carryback will be recorded in earnings and capital in the fourth quarter ending December 31, 2009.

Net loss and net loss per share for the quarter include $18 million of purchased intangibles amortization and other charges associated with acquisitions, restructuring and related accelerated depreciation charges of $94 million, and a charge of $271 million that reflects an unfavorable adjustment to the valuation allowance related to the company's deferred tax assets.

Therefore, the entity should consider the need for a valuation allowance for the ARO deferred tax asset.