Discuss the impact of accounting for income taxes on financial reporting. Explain the recognition and measurement of current and deferred tax assets and liabilities, and the role of tax provisions in financial statements.

Accounting for income taxes involves recognizing current and deferred tax assets and liabilities based on tax regulations. Explain how current tax liabilities or assets are recognized based on taxable income and tax rates. Describe the recognition of deferred tax assets and liabilities, which arise from temporary differences between accounting and tax treatments. Discuss the role of tax provisions in financial statements, including their impact on net income and tax expense, and how they reflect future tax obligations.