Printer Friendly

FASB ISSUES STATEMENT ON INCOME TAXES

 FASB ISSUES STATEMENT ON INCOME TAXES
 NORWALK, Conn., Feb. 11 /PRNewswire/ -- By a unanimous vote, the


Financial Accounting Standards Board has issued its Statement 109 on accounting for income taxes, the FASB announced today. Statement 109 supersedes the board's prior Statement 96 on the same subject. Statement 109 is effective for fiscal years beginning after Dec. 15, 1992, and earlier application is encouraged.
 The objectives of accounting for income taxes, according to FASB Project Manager E. Raymond Simpson, are "to recognize the amount of taxes payable or refundable during the current year and to recognize deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an enterprise's financial statements or tax returns."
 FASB Chairman Dennis R. Beresford said that "Statement 109 represents a significant change in the way companies will account for income taxes. Past standards in this area, which include Accounting Principles Board Opinion 11 and FASB Statement 96, were criticized for being unduly complex. Criticism of Opinion 11 also focused on the meaningfulness of the information provided, while Statement 96 critics cited its prohibition of recognizing tax benefits expected to be realized in future years. The board believes that Statement 109 appropriately addresses those concerns."
 The board took on the project leading to Statement 109 in 1989 in response to criticisms of FASB Statement 96. After careful deliberation of the issues, it decided to supersede Statement 96, and issued a proposal to that effect in June 1991. The board received more than 250 comment letters on that proposal, held three days of public hearings in October, and performed a limited field test.
 Copies of Statement 109, "Accounting for Income Taxes," are available for $10 each, prepaid, from the FASB Order Department, P.O. Box 30816, Hartford, CT 06150. Connecticut orders should add 6 percent sales tax. Some discounts are available by contacting the Order Department at 203-847-0700, ext. 555.
 -0- 2/11/92
 /CONTACT: Deborah Harrington of FASB, 203-847-0700, ext. 268/ CO: Financial Accounting Standards Board ST: Connecticut IN: FIN SU:


GK-OS -- NY030 -- 8744 02/11/92 11:03 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 11, 1992
Words:349
Previous Article:VISION TECHNOLOGIES INTERNATIONAL BOARD APPROVES A REVERSE STOCK SPLIT
Next Article:LINGERING RECESSION HAMPERS 1991 CALIFORNIA RESALE HOUSING MARKET
Topics:


Related Articles
ESOP issues and sale-leaseback accounting.
ST. PAUL BANCORP ANNOUNCES $15.7 MILLION INCREASE IN STOCKHOLDERS' EQUITY DUE TO IMPLEMENTATION OF FASB NO. 109
FASB issues statement on income taxes.
Accounting for the nonmonetary exchange of cost-method investments, an employers assumption of insolvent insurance companies' pension obligations and...
Accounting for income taxes: Statement of Financial Accounting Standards No. 109.
FASB moves to simple majority vote; releases ED on derivatives; issues Statement 145. (accounting & auditing news).
FASB proposed guidance on the AJCA.
Ask FERF about ... taxes, taxes, taxes.
Final interpretation on Accounting for Income Taxes.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters