Description of this paper

In its short life, FASB's FIN48 has proven to be s...




In its short life, FASB's FIN48 has proven to be somewhat controversial. So much so, that companies were asking FASB to delay implementation as soon as it was issued. On the surface, this standard is merely asking (telling) companies to disclose and justify their deferred tax positions by applying a realization test--companies will be able to recognize only those tax positions that have more than a 50% chance of surviving an audit or examination. Companies have always had to do this with NOLs. Are there other deferred tax positions that are so uncertain that a 50% realization test will render them financially impotent? Or is this standard aimed at tax issues where proper accounting would force companies to recognize greater tax expense and a corresponding liability? Please peruse FIN48 (attached) and provide some commentary.


Paper#2363 | Written in 18-Jul-2015

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