proportional amortization method

Assets1

1. 323-740Income Taxes—Proportional Amortization Method323 Investments—Equity Method and Joint Ventures

   ASC 323-740 provides standalone guidance on the proportional amortization method for equity investments in flow-through limited liability entities made primarily to receive income tax credits and other income tax benefits (e.g., LIHTC and other tax credit programs). If the conditions in 323-740-25-1 are met and the method is elected on a tax-credit-program-by-tax-credit-program basis (323-740-25-4), the investor amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits allocated to it, and reports that amortization within income tax expense (benefit) (323-740-35-2; 323-740-45-2).