In SFAS No. 109, the current or non-current designation of deferred tax assets and liabilities is determined by:

Question

Quizplus · Accepted Answer

The current or non-current designation of deferred tax assets and liabilities is determined based on the classification of the related asset or liability. This is because the timing of the reversal of temporary differences depends on the expected timing of the related asset or liability. Therefore, the current or non-current classification of the asset or liability determines the current or non-current classification of the related deferred tax asset or liability.