The Accounting Review Vol. 73 No. 2 1998
Deferred Tax Accounting under SFAS No. 109: An Empirical Investigation of Its Incremental Value-Relevance Relative to APB No. 11
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 (APB No. 11). Evidence suggests that SFAS 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.]
- Volume
- 73
- Issue
- 2
- Pages
- 195-212
- Sources
- bibtex:phds-export.bib