The FASB believes that the deferred tax method is the most consistent method for accounting for income taxes.

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The FASB (Financial Accounting Standards Board) prefers the asset and liability method over the deferred tax method for accounting for income taxes, as outlined in ASC 740, Income Taxes. This approach focuses on the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the financial statements or tax returns.

The FASB Believes That the Deferred Tax Method Is the Most