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New BNA Portfolio Examines Uncertain Tax Positions (FIN 48)

NEWS RELEASE

Contacts:
Mark Carrington
(703) 341-5880

Arlington, Va. (July 16, 2008) –BNA has released Accounting for Income Taxes: Uncertain Tax Positions, the latest Portfolio guidance issued from its growing Accounting Policy & Practice series. This Portfolio analyzes issues that arise from the implementation of FASB Interpretation No. 48 (FIN 48), a standard that has both caused many companies to reevaluate their internal control procedures and has also placed great pressure on companies to resolve uncertain tax positions quickly.

This Portfolio describes FIN 48's two-step process for determining tax benefits that can be reported on financial statements: (1) recognition—determine if the tax position meets the threshold test of “more likely than not” (MLTN) that the company will be able to sustain the tax return position, based solely on the position's technical merits; (2) measurement—if the tax position meets the MLTN threshold test, measure the tax benefit as the largest amount of benefit that is cumulatively greater than 50% likely to be realized.

This Portfolio also discusses FIN 48's guidance on classification of tax assets and liabilities and the determination and reporting of interest and penalties. FIN 48 also requires qualitative and quantitative disclosures of (1) roll-forwards of all unrecognized tax benefits set out in the form of a reconciliation of the beginning and ending balances of the unrecognized tax benefits on a worldwide aggregated basis; (2) reasonably possible changes in the recognized tax benefits in the next 12 months; and (3) open tax years by major jurisdictions.

Portfolio authors:

Amy Dunbar is an Accounting Professor at the University of Connecticut. She has received a number of teaching awards and is a past vice-president of the American Taxation Association. She is on the editorial board of Accounting Horizons and the Journal of the American Taxation Association. Ms. Dunbar has written articles for numerous publications, including The Encyclopedia of Taxation and Tax Policy; Journal of Public Economics; National Tax Journal; Public Finance Review; Tax Adviser; Journal of the American Taxation Association; and Taxation for Accountants. She earned a Ph.D. (Accounting), University of Texas at Austin; and a B.A. (Economics), Macalester College.
 
Kathleen McEligot is a tax partner at Deloitte Tax LLP, with nearly 30 years of professional experience. She specializes in corporate taxation with extensive experience in the financial services, distribution, and retail industries. As a firm designated specialist in Accounting for Income Taxes (FAS 109), she consults on income tax accounting issues for all types of companies. She is a frequent lecturer, speaking before groups such as the Tax Executives Institute (TEI) and is a member of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants; and a Finance Committee Member, Metropolitan Club. She is a CPA and earned a B.S., University of California, Berkeley.

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About BNA

BNA is the foremost publisher of print and electronic news, analysis, and reference products, including the recently launched Accounting Policy & Practice Series.  BNA publications intensely cover legal and regulatory developments for professionals in business and government. BNA is the oldest wholly employee-owned company in the United States, and produces more than 350 news and information services — including Daily Labor Report and Daily Tax Report — widely respected for comprehensive and objective reporting and analysis.

For more information about the BNA Tax Management Portfolios, call (800) 372.1033 or visit www.bnatax.com.