Access over 20 million homework & study documents

search

Uncertain Tax rev

Content type
User Generated
Rating
Showing Page:
1/18
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

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/18
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.
Using the company’s financial statements, address the following questions:
1. How much did the company request in this tax refund from the Internal Revenue
Service in 2009? $562M
2. How much did the company receive in the tax refund? In other words, how much
had each company received as of 2009 fiscal year end. $0
How much was each company’s receivable related to the tax credit, and what was
the total? $281M
How much of the refund did each company include in pre-tax book income? $492
M ($281+$160+$51)
3. Did the company record an unrecognized tax benefit related to the tax refund? If
the company did not discuss it, you may assume that the answer is no. Yes it did
4. If the company did record an unrecognized tax benefit, what percentage of the
maximum potential benefit did they reserve? 94.11% ($96/$108)
5. What were the net operating loss balances at each company? $332M

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/18

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 18 pages?
Access Now
Unformatted Attachment Preview
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 ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really helped me to better understand my coursework. Super recommended.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4