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Purpose

This paper aims to describe the SFAS 109/Financial Accounting Standards Board (FASB) Accounting Standards Codification 740.

Design/methodology/approach

This paper is an overview of a topic.

Findings

SFAS 109 establishes the financial accounting and reporting standards for the effects of federal, state and foreign income taxes.

Originality/value

The paper is a good discussion for non‐tax financial executives. It is a valuable read for anyone looking for an introductory paper on the subject.

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