FASB Looks at Financial Reporting of Uncertain Tax Positions, Creates Complicated More-Likely-Than-Not Methodology
Author: Staff Editors.
Source: Volume 20, Number 02, November/December 2006 , pp.54-64(11)
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Abstract:
FASB Statement 109, Accounting for Income Taxes, does not provide specific guidance on how to address uncertainty in accounting for uncertain tax positions. This has, according to the Board, resulted in diverse accounting practices which are inconsistent in how income tax assets and liabilities are reported. Therefore, in FASB Interpretation 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109, the Board prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken in a tax return. The Interpretation is effective for fiscal years beginning after December 15, 2006.Keywords:
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