ASC 740 has been described as a balance sheet (or asset and liability) approach. Explain why that

Question:

ASC 740 has been described as a (or asset and liability) approach. Explain why that is an apt description.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...