This excerpt taken from the CSGP 10-K filed Feb 28, 2007.
The Company provides for income taxes under the provisions of Statement of Financial Accounting Standards No. 109 (SFAS No. 109). Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and the basis reported in the Companys consolidated financial statements. Deferred tax liabilities and assets are determined based on the difference between financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Valuation allowances are provided against assets, including net operating losses, if it is anticipated that some or all of the asset may not be realized through future taxable earnings or implementation of tax planning strategies.