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FIN 48 compliance: disclosing tax positions in an age of uncertainty.
- Article from:
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The Tax Adviser
- Article date:
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January 1, 2008
- Author:
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Copyright informationCOPYRIGHT 2008 American Institute of CPA's. 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. (Hide copyright information)
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EXECUTIVE SUMMARY
* The interaction of FAS 109 and FIN 48 will result in greater public disclosure of tax planning techniques.
* Under FIN 48, a tax position is recorded only if the tax position is more likely than not to be sustained on examination (including related appeals or litigation processes).
* A material tax position is tested under a two-step process consisting of a recognition step and a measurement step.
* FIN 48 requires a reevaluation of all tax positions at the end of each reporting period. Prior recognized positions may be derecognized or remeasured, and prior positions may be recognized in each reevaluation.
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FIN 48 changes ...