FASB to issue new FIN 48 guidance
FASB will issue a proposed staff position for FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, for pass-through and tax exempt not-for-profit entities. Once released, the FSP will be available for a 30-day comment period.
FASB also decided:
Not to provide guidance related to whether a tax is or is not an income tax.
- That attribution of the income tax to the entity or its owners should be based on the laws and regulations of the taxing authority rather than on who is responsible for payment of the income taxes.
- The proposed guidance would clarify that an entity’s status as a pass-through entity or a tax exempt not-for-profit entity is a tax position
- To provide guidance that explains that a consolidating entity should include uncertain tax positions recorded by its subsidiaries in its consolidated financial statements, regardless of the tax status of the consolidating parent
The guidance will be effective upon issuance for entities that already apply FIN 48, and upon adoption of Interpretation 48 for those entities that have deferred the application of FIN 48. Certain nonpublic entities may defer the effective date to the annual financial statements for fiscal years beginning after Dec. 15, 2008.
FASB officially deferred the effective date for FIN 48 for nonpublic pass-through entities and nonprofit organizations to annual financial statements for fiscal years beginning after Dec. 15, 2008.
The deferral gave FASB with additional time to develop guidance on the application of FIN 48 by pass-through entities and not-for-profit organizations and to amend the disclosure requirements for nonpublic enterprises.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.