Current Developments in Financial Accounting and Reporting
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Dennis R. Jennings
The FASB has released an exposure draft response to criticism about the complexity of FAS 96 on accounting for income taxes and the limitation therein on the recognition of deferred tax assets. Continuing the use of the liability method set forth in FAS 96, future taxable income maybe considered when recognizing a deferred tax asset. COPAS Bulletin no. 24, Producer gas Imbalances illustrates how complex gas imbalance accounting has become and lists seventeen required and nine conditional items of data on the operator's monthly gas imbalance statement. The SEC staff has not yet taken a position on whether imbalances should be reported on the entitlement method or sales method, but informal comments have been made on disclosure and uniformity. The AICPA has released a proposed SAS, "Review of or Performing Procedures on Interim Financial Information," to supersede SAS 36 and SAS 66 effective for interim financial information filed with specified regulatory agencies for interim periods ending after September 15, 1991. The AICPA has released Financial Report Survey No. 45, "Illustrations of Management's Discussion and Analysis of Financial Condition and Results of Operations." The survey covers the initial response in practice to Financial Reporting Release No. 36 issued May 18, 1989. The most important change is in the emphasis on disclosure of forward-looking information by management.
Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Fall/Winter 1991, pp. 1‑6.