ABSTRACT
Income tax allocation was one of Willard’s pet subjects. The following article reflects the depth and comprehensiveness of his thinking about this reporting problem. In the article he expresses one of his deep-felt principles to the effect that the principal function of the income statement is to facilitate the forecasting of future earning power. Based on this principle, he felt strongly that the proper matching of expense and revenue demands the allocation of income tax expense, even if deferment is for a relatively long period of time.
