What is SSAP 101?
A – SSAP No. 101 establishes statutory accounting principles for current and deferred federal and. foreign income taxes and current state income taxes.
What FAS 109?
FAS 109 Summary This Statement establishes financial accounting and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. It requires an asset and liability approach for financial accounting and reporting for income taxes.
How are deferred taxes presented on the balance sheet?
Deferred income tax shows up as a liability on the balance sheet. The difference in depreciation methods used by the IRS and GAAP is the most common cause of deferred income tax. Deferred income tax can be classified as either a current or long-term liability.
What replaced FAS 109?
SFAS 109 is required for fiscal years beginning after December 15, 1992. Generally, a change from APB 11 or SFAS 96 to SFAS 109 is handled as a change in accounting principle in accordance with APB 20.
What is FIN 48 called now?
ASC 740, formerly known as FIN 48, offers guidance on uncertain tax positions. It is broad in scope and now applies to both nonprofit and for-profit entities. In our experience, most nonprofits argue that they are exempt from paying income taxes.
Why is ASC 740 important?
ASC 740 provides a way to recognize a company’s income tax expense for financial reporting under U.S. generally accepted accounting principles (GAAP) by measuring the differences between the tax bases of assets and liabilities and the carrying amounts of assets and liabilities recognized for financial reporting.
Did ASC replace FAS?
The accounting profession experienced a major change on July 1, 2009, when the Financial Accounting Standards Board (the FASB) launched the FASB Accounting Standards Codification (the FASB ASC). From now on, instead of issuing new standards (e.g., FAS 109), the FASB will issue updates to the FASB ASC.