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FAS 109: More complex judgment required for accounting for income taxes
Author(s) -
Byington J. Ralph
Publication year - 1992
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970030406
Subject(s) - accounting , business , tax deduction , deferred tax , income tax , tax deferral , write off , economics , financial accounting , accounting standard , actuarial science , accounting information system , gross income , public economics , state income tax , tax reform
FAS 109, “Accounting for Income Taxes,” is the result of a significant effort by the Financial Accounting Standards Board to address the concerns of preparers and users of financial statements. The new standard recognizes the likelihood of recognition of deferred taxes and in particular of the benefit of deferred tax assets. More guidance is provided for the recognition of deferred tax assets in the form of negative and positive evidence. Examples are presented that illustrate the application of the new standard to various typical problems of accounting for income taxes.