CCH Learning Center

Description:
FASB Interpretation No. 48 (FIN 48) was issued as an interpretation of FASB Statement No. 109 (FAS 109), Accounting for Income Taxes, to address the accounting for uncertainty in income taxes, including state and local income taxes, recognized in an enterprise's financial statements in accordance with FAS 109. The goal of FIN 48 was more consistent reporting of tax positions through separate recognition and measurement standards. As a result of Codification, the guidance formerly found in FIN 48 and FAS 109 is now incorporated in FASB ASC 740, Income Taxes.

Compliance with state and local income tax laws for enterprises with complex legal structures and operations in numerous jurisdictions can be an extraordinary undertaking. There is no doubt that management will look more often to tax practitioners for opinions to support management assertions regarding jurisdictional tax positions in financial statements.

This course highlights some of the complex issues an enterprise may face when applying recognition standards to its state and local income tax positions.

Upon completion of this course, you will be able to:

• Restate the goal of FIN 48 (now part of FASB ASC 740);
• Describe the FASB ASC 740 recognition standard for state tax positions;
• Reiterate the FASB ASC 740 measurement standard for state tax positions; and
• Apply the two-step process for analyzing tax positions arising from intercompany transactions.