We have recently published a new Financial Reporting Insights, Accounting for income taxes – Uncertain tax positions. This publication is intended to be used as a resource in understanding and analyzing the accounting for uncertainty in income taxes recognized in an entity’s financial statements. It describes the unit of account, recognition threshold and measurement attribute(s) of a tax position taken or expected to be taken in a tax return. It also addresses how to account for changes in judgment, interest and penalties, and the related disclosure requirements for uncertain tax positions.
This publication does not address every aspect of accounting for income taxes and should therefore be read in conjunction with the Financial Accounting Standards Board Accounting Standards Codification (ASC) 740, Income Taxes.
