In an unexpected move, FASB unanimously rejected some 400 corporate requests for a one-year delay of its new standard on accounting for uncertain tax positions.
At its board meeting today, the Financial Accounting Standards Board stunned tax experts and companies alike when it unanimously rejected calls for a one-year delay in the implementation of FIN 48, Accounting for Uncertainty in Income Taxes. The accounting rule is effective for fiscal years beginning after December 15, 2006, which means those companies will have to comply by the end of this quarter. The standards board had received some 400 corporate comment letters, most of them calling for a delay.
Instead, the staff recommended that the board provide a better explanation of "ultimate settlement," a phrase referring to the point at which companies can confidently say they have finished accounting for the uncertainty in their tax positions.
See full Article.
Posts
