FASB Finalizing FIN 48 Guidance, Launches Disclosure Framework Project

At its board meeting earlier today (July 8), FASB voted to issue additional guidance relating to FIN 48, Accounting for Uncertainty in Income Taxes. Although the guidance is aimed primarily at private companies and not-for-profits - specifically as relates to pass-through entities - FASB board members encouraged the staff to consider amending the title of the new guidance, to reflect the fact that all entities are technically within the scope of the guidance, in that all entities need to determine their tax status (including, according to FASB, whether they are a pass-through entity) as part of implementing FIN 48.

The proposed guidance, released earlier this year as Proposed FSP FIN 48-d, was entitled: Application Guidance for Pass-through Entities and Tax-Exempt Not-for Profit Entities and Disclosure Modifications for Nonpublic Entities. FASB received fourteen comment letters on the proposal, including this letter from FEI's Committee on Private Companies, Standards Subcommittee.

The effective date of the guidance will be periods ending after Sept. 15, 2009. Read more here.

Separately, FASB Chairman Robert Herz announced at the July 7 meeting that the board has added a new project on the Disclosure Framework. FASB anticipates releasing a Preliminary Views document for this project in the first half of 2010. Read more here.