Under the liability approach,the full change in the amount of future liability is recognized as an increase or decrease in income tax expense in the year the

Question

Quizplus · Accepted Answer

Under the liability approach, the full change in the amount of future liability is recognized as an increase or decrease in income tax expense in the year the tax law is enacted. This is because the enactment of the law provides the necessary confirmation that the future tax rates and laws have changed, impacting the calculation of deferred tax assets and liabilities.

Under the Liability Approach,the Full Change in the Amount of Future