SFAS No 109, “Accounting for Income Taxes,” requires companies t

SFAS No 109, “Accounting for Income Taxes,” requires companies to use the asset-liability method of interperiod income tax allocation.

Required:
a. Discuss the criteria for recoginizing deferred tax assets and deffered tax liabilities under the provisions of SFAS No. 109.
b. Compare and contrast the asset-liablity method and the deferred method.