The application of SFAS No.109 results in the recording on the financial statements of an enterprise of deferred tax assets and liabilities.The initial identification of these deferred tax assets and liabilities raises the issue as to how these amounts should be shown on the balance sheet in terms of current and noncurrent classifications.One approach advocated by some in the profession is to classify all deferred taxes as noncurrent.
Required:
Explain the advantages and disadvantages of this approach and indicate if this approach is acceptable under SFAS No.109.

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The Answer of The application of SFAS No.109 results in the recording on the financial statements of an enterprise of deferred tax assets and liabilities.The initial identification of these deferred tax assets and liabilities raises the issue as to how these amounts should be shown on the balance sheet in terms of current and noncurrent classifications.One approach advocated by some in the profession is to classify all deferred taxes as noncurrent.
Required:
Explain the advantages and disadvantages of this approach and indicate if this approach is acceptable under SFAS No.109.

The Application of SFAS No