Section 3465 - Income Taxes - Taxes Payable Method
This Section establishes standards for the recognition, measurement, presentation, and disclosure of income and refundable taxes in an enterprise’s financial statements. However, it does not apply to accounting for investment tax credits (see Section 3805).
An enterprise must make an accounting policy choice to account for income taxes using either:
The taxes payable method
The future income taxes method
Under the taxes payable method, only current income tax assets and liabilities are recognized.