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News & Events


Accounting for Uncertainty in Income Taxes – The Effect of FASB Interpretation No. 48

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Every chief financial officer, chief tax officer, and general counsel — as well as every other person with responsibility for a company’s financial statements — should be conversant with final Interpretation No. 48 (FIN 48), which was issued by the Financial Accounting Standards Board on July 13, 2006. FIN 48 provides definitive guidance on how to address uncertainty in accounting for income tax assets and liabilities under FASB Statement No. 109, Accounting for Income Taxes. As the Board stated in its July 13 press release, FIN 48 “prescribes a consistent recognition threshold and measurement attribute, as well as clear criteria for subsequently recognizing, derecognizing and measuring such . . . positions for financial statement purposes. The Interpretation also requires expanded disclosure with respect to the uncertainty in income taxes.” View full article (PDF).

This article first appeared in The Tax Executive.