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Uncertain Tax Position(new)

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Surname
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Uncertain Tax Position
1. Describe FIN 48 (now ASC 740-10) and what is meant by “uncertain tax
positions.”
The FIN 48 (now ASC 740-10) is an accounting requirement for all businesses in the United
States to disclose and analyze their uncertain tax positions (UTP). This regulation applies to all
businesses using the US GAAP (Generally Accepted Accounting Principles)
(Pricewaterhousecoopers [PWC] 14-17). Under this regulation, a business only recognizes an
income tax benefit if it highly likely it will materialize (more than 50% likelihood).
An uncertain tax position (UTP) refers to a tax position that is expected to be taken in a
future tax return by the company or the tax position of a previously filed return (Financial
Accounting Standards Board 18-21). Examples of UTP include decisions to exclude some
taxable income in a tax return or a decision to shift income between jurisdictions.
2. What were the FASB objectives when issuing the FIN 48 interpretation?
To clarify the accounting for uncertainty in income taxes recognized in a firms,
books of accounts
To prescribe the recognition threshold and measurement attribute in for the
financials and tax returns

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Surname 2
Provide guidance for; tax derecognition and classification, tax on interest and
penalties, tax accounting in interim periods, tax disclosure, and tax accounting
in transitions (Financial Accounting Standards Board [FASB]b).
To recognize the amount of taxes payable or refundable in the current year.
To recognize the deferred tax liabilities and assets for future taxation of events
that are in an entity’s financial statements or tax returns
(Pricewaterhousecoopers [PWC] 39).
Temple-Inland Inc.
1. $562M
2. Received Tax refund. $0M
Total receivable $281M
Refund included in pre-tax book income $492 M ($281+$160+$51)
3. Yes it did
4. 94/11% ($96/$108)
5. $332M
6. Valuation allowances on deferred tax assets $23M
The valuation allowances pertained to the net operating loss carryforwards
7. No, it was not a noteworthy difference
8.
a)
The company must believe that the refund and unrecognized tax benefit does not meet the
threshold for recognizing current and deferred taxes. They must determine whether or not
the tax position will be sustained upon examination, including resolution of any related

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Surname 1 Surname Tutor Course Date Uncertain Tax Position 1. Describe FIN 48 (now ASC 740-10) and what is meant by “uncertain tax positions.” The FIN 48 (now ASC 740-10) is an accounting requirement for all businesses in the United States to disclose and analyze their uncertain tax positions (UTP). This regulation applies to all businesses using the US GAAP (Generally Accepted Accounting Principles) (Pricewaterhousecoopers [PWC] 14-17). Under this regulation, a business only recognizes an income tax benefit if it highly likely it will materialize (more than 50% likelihood). An uncertain tax position (UTP) refers to a tax position that is expected to be taken in a future tax return by the company or the tax position of a previously filed return (Financial Accounting Standards Board 18-21). Examples of UTP include decisions to exclude some taxable income in a tax return or a decision to shift income between jurisdictions. 2. What were the FASB objectives when issuing the FIN 48 interpretation? ➢ To clarify the accounting for uncertainty in income taxes recognized in a firms, books of accounts ➢ To prescribe the recognition threshold and measurement attribute in for the financials and tax returns Surname 2 ➢ Provide guidance for; tax derecognition and classification, tax on interest and penalties, tax accounting in interim periods, tax disclosure, and tax accounting in transitions (Financial Accounting Standards Board [FASB]b). ➢ To recognize the amount of taxes p ...
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