Accounting for income taxes: a continuing burden

Journal Article · Fri Mar 01 04:00:00 EST 1985 · Oil Gas Tax Q.; (United States)

OSTI ID:5765476

Munter, P

While it is still too soon to determine what conclusions the Financial Accounting Standards Board (FASB) will reach regarding accounting for income taxes, it does appear that some form of interperiod tax allocation will be required by the FASB. Thus, companies will still incur a cost to compute the provision for income taxes. As a consequence, since oil and gas companies currently have a significant amount of deferred taxes, they are likely to continue to face many of the same complexities that currently exist. Therefore, it is important that oil and gas producers closely monitor the progress of this project and provide input to the FASB throughout the process (e.g., respond to exposure drafts, etc.). Additionally, since the FASB is more likely to alter how deferred taxes are computed rather than if they are computed (e.g., the FASB may change the computational process but is unlikely to eliminate the need for deferred taxes), oil and gas companies will need to prepare for the changes in advance of the effective date. By closely monitoring the project, companies will be in a better position to implement any new accounting requirements with a minimum of costs and efforts. 9 references, 2 tables.

• Research Organization: Texas Tech Univ., Lubbock
• OSTI ID: 5765476
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 33:3; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
294003 -- Energy Planning & Policy-- Natural Gas
ACCOUNTING
COST
INDUSTRY
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY
STANDARDS
TAXES