Summary
Deferred taxes have long been one of the most perplexing issues for CEO to understand. Trying to decipher what, when and where to defer often becomes problematic when deferrals show up as assets on balance sheets. This is the first part of a two-part series that will provide a historical overview of Statements of Statutory Accounting Principles No. 10, Income Taxes, better known as SSAP 10. This article will also cover corresponding Generally Accepted Accounting Principles, or GAAP, literature identified as ASC 740 Income Taxes (formerly referred to as Financial Accounting Standard No. 109 Accounting for Income Taxes, or simply MS 109). It will highlight some of the significant differences between the two methodologies and conclude with some current developments in the area.
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A Taxing Situation
Deferred taxes have long been one of the most perplexing issues for chief executive officers to understand. Trying to decipher what, when and where to defer often becomes problematic when deferrals show up as assets on balance sheets.
This is the first part of a two-part series that will provide a historical overview of Statements of Statutory Accounting Principles No. 10, Income Taxes, better known as SSAP 10. It went into effect Jan.l, 2001, and is still wreaking havoc for many insurance companies. This articl...See the full content of this document
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