Change in focus from income statement to balance sheet


Question: Need to write a memo that describing the change in focus from the income statement to the balance sheet. Describe the concepts of permanent and temporary differences. Give two examples of each and how they reflect the new focus.

The issue of SFAS No. 109, the framework now used in accounting for income taxes.

(Can use the FASB website to view the official pronounce at

https://www.fasb.org/pdf/aop_FAS109.pdf or the summary at https://www.fasb.org/st/summary/stsum109.shtml )

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Accounting Basics: Change in focus from income statement to balance sheet
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