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can you help me rephrase this - American Eagle Outfitters (AEO) calculates income taxes following ASC 740, Income Taxes, using the asset and liability method.
can you help me rephrase this - American Eagle Outfitters (AEO) calculates income taxes following ASC 740, Income Taxes, using the asset and liability method. This involves recognizing deferred tax assets and liabilities based on differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases. AEO evaluates income tax positions according to ASC 740, which includes recognizing and measuring tax positions based on their technical merits and sustainability. Estimates and assumptions are required to calculate deferred tax assets and liabilities and to determine the recognition of tax benefits from uncertain positions and valuation allowances. While management believes these estimates are reasonable, actual results may differ
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