Intercorporate Investments Analysis Implications Provision for Taxes on Undistributed Subsidiary Earnings .o Current practice assumes all undistributed earnings transfer to the parent and that a provision for taxes is made by the parent in the current period The decision on whether taxes are provided on undistributed earnings is that of management .s Management must report the amount of earnings for which no income taxes are provided by the le parentIntercorporate Investments Analysis Implications Provision for Taxes on Undistributed Subsidiary Earnings ❖ Current practice assumes all undistributed earnings transfer to the parent and that a provision for taxes is made by the parent in the current period ❖ The decision on whether taxes are provided on undistributed earnings is that of management ❖ Management must report the amount of earnings for which no income taxes are provided by the parent