The Application of SFAS No

question 84

Essay

The application of SFAS No.109 results in the recording on the financial statements of an enterprise of deferred tax assets and liabilities.The initial identification of these deferred tax assets and liabilities raises the issue as to how these amounts should be shown on the balance sheet in terms of current and noncurrent classifications.One approach advocated by some in the profession is to classify all deferred taxes as noncurrent.
Required:
Explain the advantages and disadvantages of this approach and indicate if this approach is acceptable under SFAS No.109.

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Definitions:

Primary Care Physicians

Medical doctors who provide first contact for a person with an undiagnosed health concern as well as continuing care for varied medical conditions, not limited by cause, organ system, or diagnosis.

Drug Treatment

The use of medications or other substances to manage or cure diseases and disorders.

Deinstitutionalization

Movement in which thousands of mental patients were released from mental institutions; a result of the patients’ rights movement, which was aimed at stopping the dehumanization of mental patients and at restoring their basic legal rights.

Patients' Rights Movement

A socio-political movement advocating for the protection and respect of patients' rights in healthcare settings.