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Understanding and applying FAS 109
Author(s) -
Collins William A.,
Mautz R. David
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.3970040210
Subject(s) - accounting , statement (logic) , liability , financial statement , asset (computer security) , financial accounting , accounting standard , income statement , business , actuarial science , economics , accounting information system , political science , computer science , balance sheet , law , audit , computer security
New procedures for financial reporting of income taxes will take effect for many companies this year. These procedures are spelled out in Statement of Financial Accounting Standards 109 and represent a sharp departure from Accounting Principles Board Opinion 11. This article breaks down the new procedures into seven steps and introduces readers to the practical implementation of the asset and liability approach to accounting for income taxes. The article also highlights differences between FAS 109 and its predecessors, focusing on some of the difficult judgments that must be made to apply the new rules.