Deferred Tax Accounting Under SFAS No. 109: An Empirical Investigation of its Incremental Value-Relevance Relative to APB No. 11.
Year: 1998
Type: article
Abstract: This study investigates whether the net deferred tax liabilities disclosed under Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes (SFAS No. 109) provides additional value-relevant information over the disclosure required by Accounting Principles Board Opinion No. 11, Accounting for Income Taxes (APS No. 11). Evidence suggests that SEAS No. 109 data represent value-relevant information above and beyond APB No. 11. Additionally, evidence indicates that the changes made by SFAS No. 109-the separate recognition of deferred tax assets, the creation of valuation allowances for deferred tax assets and the adjustment of deferred tax accounts for enacted tax rate changes-each provide value-relevant firm data. These results suggest that SFAS No. 109 increased the value-relevance of deferred tax amounts in financial statements.
Source: The Accounting Review
DOI: 10.2308/tar-542134
Author: Benjamin C. Ayers
Institution: University of Georgia
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2289640420