Auditing deferred tax valuation allowances: the intersection of SAS 57 and SFAS 109.(Accounting & Auditing Update) From: The Ohio CPA Journal | Date: February 1, 1997| Author: Moreland, Keith A. | COPYRIGHT 1997 Ohio Society of Certified Public Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

Statement of Financial Accounting Standards (SFAS) 109, Accounting for Income Taxes, specifies criteria to be considered in recording a valuation allowance to reduce deferred tax assets to the amount that is expected to be realized ("more likely than not"). Statement of Auditing Standards (SAS) 57, Auditing Accounting Estimates, provides guidance for testing estimates that appear throughout the financial statements. SAS 57 predates SFAS 109 and so the SAS 57 guidance does not specifi...