How to Maintain Integrity, Effeciencies and Managerial Harmony When Dealing with Tax Uncertainty in Light of FIN 48

Sponsored By Concord Specialty Risk

Topics:

Accounting > Accounting Standards , Tax

Finance & Risk Management > Insurance

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Abstract:

Tax uncertainty can breed divergent views within senior management of an enterprise.

FIN 48 now governs the accounting of all tax positions. It requires that each "individual tax position" must be separately evaluated and measured in the light of a new (perhaps unrealistic) set of assumptions and management’s (subjective) estimate of likely settlement value.

In order to comply with FIN 48, an enterprise must first define its "tax positions," evaluate what tax positions are "more likely than not" to prevail and then measure the maximum amount of ultimate settlement that is "more likely than not." Measuring recognized tax benefits may be especially troublesome.

There are several tools, resources and risk transfer devices that can assist an enterprise and its auditor in determining and disclosing FIN 48 liability.
* FIN 48 software
* A tax opinion justifying the position
* Tax insurance to support the measurement

DETAILS

Sponsored by: Concord Specialty Risk

Released: March 28, 2008

Length: 5 pages

Format: PDF (28 kb)

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