Download or read book Analysis of FIN 48 written by Christopher Barton and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Analysis of FIN 48 accounting for Uncertain Tax Positions written by Danielle E. Rolfes and published by . This book was released on 2008 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book One Year Later written by Nancy B. Nichols and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the issuance of FASB Interpretation No. 48 (FIN 48), lt;Igt;Accounting for Uncertainty in Income Taxes, lt;/Igt;in July 2006, corporate tax executives have expressed concerns that the implementation of FIN 48 would provide the IRS with a road map for uncovering uncertain tax positions. An analysis of the 2007 FIN 48 disclosures of calendar year-end lt;Igt;Fortunelt;/Igt; 500 companies found that it is unlikely the IRS will gather much useful information from the disclosures. FIN 48 does not require any disaggregation of the disclosures by jurisdiction and none of the sample companies provided a breakdown by jurisdiction. Because the majority of lt;Igt;Fortunelt;/Igt; 500 companies operate in multiple states and foreign locations, the IRS cannot readily identify U.S. tax contingencies. The only potential value that the FIN 48 disclosures may provide the IRS is to assist them in risk analysis when identifying which taxpayers to select for audit.The study also found that a large percentage of companies reported changes to prior year tax positions. That finding reminds financial statement users that while the FASB can provide specific guidance for evaluating uncertain tax positions, management must still exercise a significant amount of judgment in the evaluation process. In addition, the explanations provided were typically vague or ambiguous, effectively reducing the value of the disclosure to the reader.
Download or read book Accounting for Income Taxes written by Amy Dunbar and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: ... provides a comprehensive analysis of FASB interpretation no. 48, Accounting for uncertainty in income tax position--an interpretation of FASB statement no. 109, which addresses the accounting for uncertainty in income taxes recognized in a company's financial statements in accordance with FASB statement no. 109, Accounting for income taxes.
Download or read book Fin 48 Answer Book 2009 Edition written by Mark L. Friedlich and published by CCH. This book was released on 2008-08 with total page 974 pages. Available in PDF, EPUB and Kindle. Book excerpt: FIN 48 Answer Book is designed to for practitioners who need quick and authoritative answers to questions concerning the implementation of FIN 48. This book uses simple straightforward language to provide guidance on consistent accounting practices and criteria for enterprises reporting tax benefits from uncertain tax positions. The question-and-answer format, with its breadth of coverage, effectively conveys the complex subject matter of implementing and applying FIN 48.
Download or read book FIN 48 Uncertainty and Transfer Pricing written by Susan C. Borkowski and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial Accounting Standards Board Interpretation No. 48: Accounting for Uncertainty in Income Taxes (hereafter, FIN48) has changed significantly how corporations must disclose uncertain tax positions. One uncertain tax position experienced by most TNCs is related to the cross-border shifting of income due to its transfer pricing transactions, its characterization of specific transactions as not affecting reportable income or as tax exempt, and its management decision that specific income is not taxable by a foreign tax authority (August 2008). The main areas of interest in this study are a TNC's disclosures of its uncertain tax positions both generally and specific to transfer pricing. These disclosures are assessed pre- and post-FIN 48 implementation in both a traditional statistical analysis and in a content analysis of the related footnotes to the annual reports for 2006 through 2009. DATA ANALYSIS IN PROCESS.
Download or read book Differences between FIN 48 and IFRIC 23 written by Carolin Seibert and published by Springer Nature. This book was released on 2022-08-31 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: Uncertainties about the tax treatment of business transactions in the tax return or tax balance sheet can cause significant accounting challenges for current and deferred taxes in the financial statements. Whereas the accounting treatment of tax risks or tax audit risks has been regulated under US GAAP since 2006, a corresponding IFRS regulation was only published in 2017 and is effective from the 2019 fiscal year. The author takes this as an opportunity to analyze and critically assess the differences between the US GAAP accounting regulation “FIN 48 – Accounting for Uncertainty in Income Taxes” and the IFRS accounting regulation “IFRIC 23 – Uncertainty over Income Tax Treatments”. Building on the insights from her analysis, the author also examines the problem areas arising from IFRIC 23 from the perspective of the German tax authorities, German business practice and German advisory practice.
Download or read book FIN 48 and Tax Compliance written by Lillian F. Mills and published by . This book was released on 2011 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a model to examine the effects of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), on the strategic interaction between publicly-traded corporate taxpayers and the government. Several of our findings contradict conjectures voiced by members of the business community regarding the economic effects of implementing FIN 48. Specifically, taxpayers with strong facts obtain higher expected payoffs from uncertain tax benefits and some disclosed liabilities understate the expected tax liability. Consistent with the common conjectures, however, some taxpayers are more likely to be audited or are deterred from entering into transactions that generate uncertain benefits because of FIN 48.
Download or read book One Size Does Not Fit All written by Leslie A. Robinson and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Our study examines how the uniform rules of FIN 48, which governs accounting for income tax uncertainty, affect the relevance of income tax accounting. By requiring all firms to follow the same recognition and measurement process, the FASB intended FIN 48 to improve the relevance of income tax accounting. However, practitioners argue that reserves reported under FIN 48 lack relevance because they represent liabilities that will never be paid to tax authorities. Consistent with these concerns, we estimate that, over a three-year period, only 24 cents of every dollar of reserves unwinds via settlements. Moreover, contrary to the FASB's intention, we find no evidence that FIN 48 increased the ability of tax expense to predict future tax cash flows. Rather, we find that the predictive ability of tax expense for future tax cash flows decreases among firms for which FIN 48 is most restrictive. Finally, we find no evidence that investors identify firms for which reserves overstate future tax cash outflows and incorporate this into their valuations. Our results provide evidence that the uniform accounting rules of FIN 48 negatively affect the relevance of income tax accounting.
Download or read book Did FIN 48 Improve Comparability in the Financial Reporting of Income Taxes written by John D. Phillips and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates whether Financial Accounting Standards Board Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, improved comparability in the financial reporting of income tax expense. This research is important because it provides evidence on whether the standard improved comparability in accounting for income taxes. It also provides evidence useful to market participants in evaluating the decision usefulness of reported tax information. We use a comparability measure developed by De Franco et al. (2011) and, by definition, compute the comparability of income tax expense as the difference in comparability between pre-tax and after-tax income. We find that FIN 48 improved the comparability of income tax expense for more tax aggressive firms and firms that managed earnings prior to the issuance of FIN 48. This evidence is consistent with improved consistency in the measurement and recognition of uncertain tax benefits under FIN 48 leading to an improvement in income tax expense comparability for firms most likely to have greater uncertain tax positions and for firms that used the tax reserve to opportunistically manage earnings.
Download or read book Financial Statement Analysis written by Martin S. Fridson and published by John Wiley & Sons. This book was released on 2002-10-01 with total page 414 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for Financial Statement Analysis A Practitioner's Guide Third Edition "This is an illuminating and insightful tour of financial statements, how they can be used to inform, how they can be used to mislead, and how they can be used to analyze the financial health of a company." -Professor Jay O. Light Harvard Business School "Financial Statement Analysis should be required reading for anyone who puts a dime to work in the securities markets or recommends that others do the same." -Jack L. Rivkin Executive Vice President (retired) Citigroup Investments "Fridson and Alvarez provide a valuable practical guide for understanding, interpreting, and critically assessing financial reports put out by firms. Their discussion of profits-'quality of earnings'-is particularly insightful given the recent spate of reporting problems encountered by firms. I highly recommend their book to anyone interested in getting behind the numbers as a means of predicting future profits and stock prices." -Paul Brown Chair-Department of Accounting Leonard N. Stern School of Business, NYU "Let this book assist in financial awareness and transparency and higher standards of reporting, and accountability to all stakeholders." -Patricia A. Small Treasurer Emeritus, University of California Partner, KCM Investment Advisors "This book is a polished gem covering the analysis of financial statements. It is thorough, skeptical and extremely practical in its review." -Daniel J. Fuss Vice Chairman Loomis, Sayles & Company, LP
Download or read book Financial Statement Analysis Valuation written by Peter Douglas Easton and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of FIN48 on Earnings Management written by Cathalene Rogers Bowler and published by . This book was released on 2013 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this study is to examine the impact of FASB Interpretation No. 48 (FIN48), on earnings management. FIN48 is an interpretation of FASB Statement No. 109 (FAS109), instituted by FASB in 2006 to provide stringent disclosure requirements on tax estimates subject to measurement judgment. Because of FIN48 disclosure requirements, managers' ability to manage earnings through deferred tax assets valuation allowance (DTVA) was somehow compromised. Pre-FIN 48 studies on the association between DTVA and earnings management (EM) find mixed evidence. To determine the effectiveness of FIN48 in curtailing DTVA as a tool to manage earnings, this study examines the association between the level of changes in DTVA and five EM motive hypotheses: namely, debt/equity, bonus compensation, political costs, big bath, and income smoothing hypotheses, in the pre- and post-FIN48 periods. Using pooled data of 164 firms from Compustat, for the period 2003-2010, the data is separated into two test periods: pre-FIN48 (2003--2006) and post-FIN48 (2007-2010). The analysis of all five motives in the pre- and post-FIN48 periods reveals that big bath was most prevalent during the pre-FIN48 period. This indicates that managers recorded higher levels of changes in DTVA to manage earnings downward, which supports big bath hypothesis. However, the post-FIN48 period indicates a prevalence of upward earnings smoothing, suggesting that managers recorded lower levels of changes in DTVA to manage earnings upward. Year-by-year cross-sectional regressions also show evidence of political costs, big bath, and downward earnings smoothing motives during the pre-FIN48 period (2003--2006). Although there is no evidence of bonus compensation during this period, there is evidence of bonus maximization, which is an income decreasing motive. So it appears that the pre-FIN48 period was a time of downward EM. For the first two years (2007--2008) of the post-FIN48 period, there is no evidence of any of the five EM motives, which suggests that FIN48 was effective in curtailing the use of DTVA to manage earnings. However, in the latter two years (2009--2010), which was a perilous time of the recession, results show evidence of bonus compensation, earnings smoothing (upward), and big bath motives. This suggests that FIN48 was less effective in a recessionary period. When managers face a recession, with anticipation of a drastic loss, the motivation to survive becomes a more influential factor in mangers' accounting choices. This study contributes to the literature in two major ways. First, it appears to be the first study to conduct a pre- and post-FIN48 analysis of an association between DTVA and EM motives to demonstrate the efficacy of FIN48 to curtail EM. Second, this study updates and resolves the pre-FIN48 mixed evidence of an association between DTVA and EM.-- Abstract.
Download or read book FIN 48 written by Cleary Gottlieb Steen & Hamilton LLP. and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Accounting for Income Taxes written by John R. Graham and published by Now Pub. This book was released on 2012-11-09 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting for Income Taxes is the most comprehensive review of AFIT research. It is designed both to introduce new scholars to this field and to encourage active researchers to expand frontiers related to accounting for income taxes. Accounting for Income Taxes includes both a primer about the rules governing AFIT (Sections 3-4) and a review of the scholarly studies in the field (Sections 5-8). The primer uses accessible examples and clear language to express essential AFIT rules and institutional features. Section 3 reviews the basic rules and institutional details governing AFIT. Section 4 discusses ways that researchers, policymakers, and other interested parties can use the tax information in financial statements to better approximate information in the tax return. The second half of the monograph reviews the extant scholarly studies by splitting the research literature into four topics: earnings management, the association between book-tax differences and earnings characteristics, the equity market pricing of information in the tax accounts, and book-tax conformity. Section 5 focuses on the use of the tax accounts to manage earnings through the valuation allowance, the income tax contingency, and permanently reinvested foreign earnings. Section 6 discusses the association between book-tax differences and earnings characteristics, namely earnings growth and earnings persistence. Section 7 explores how tax information is reflected in share prices. Section 8 reviews the increased alignment of accounting for book purposes and tax purposes. The remainder of the paper focuses on topics of general interest in the economics and econometric literatures. Section 9 highlights some issues of general importance including a theoretical framework to interpret and guide empirical AFIT studies, the disaggregated components of book-tax differences and research opportunities as the U.S. moves toward International Financial Reporting Standards (IFRS). Section 10 discusses econometric weaknesses that are common in AFIT research and proposes ways to mitigate their deleterious effects.
Download or read book Are Tax and Non tax Factors Associated with Fin 48 Disclosures written by Janet L. McDonald and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the determinants of tax aggressiveness. I utilize the unrecognized tax benefits (UTB) disclosed by the adoption of Financial Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48) to proxy for firms̕̕ tax aggressiveness. I hand collect UTB disclosures for 562 calendar year-end firms in the S & P 1500. Controlling for firms̕ incentives and abilities to engage in aggressive tax positions (tax factors) and firms̕ discretion over recognizing the financial reporting benefits of aggressive tax positions, I examine whether firms̕ level of aggressive tax positions is influenced by (1) financial reporting aggressiveness, (2) choice of auditor, (3) analyst coverage, and (4) corporate governance quality. Using ordinary least squares regression, I examine the determinants of firms total UTB and its permanent and temporary components. I find that UTB and its permanent component are positively associated with firm size, presence of foreign operations, research and development activity, selling, general and administrative activity, firm value, and the probability that the firm engages in tax shelter activity. However, the temporary component is only increasing in firm size. Also, I find that UTB and its permanent component are positively associated with firms engaging in financial reporting aggressiveness and increasing auditor provided tax services, but negatively associated with analyst coverage, while the temporary component is only positively associated with financial reporting aggressiveness. Finally, I split the sample based on firms̕ use of discretion over recognizing the tax benefits of aggressive tax positions prior to FIN 48 adoption. I find that firms which aggressively recognize tax benefits prior to FIN 48 adoption (i.e. firms that increased UTBs at FIN 48 adoption) have UTBs that are positive and significantly associated with (1) the probability that a firm engages in tax shelter activity, (2) auditor provided tax services, and (3) their record of using last chance earnings management to meet or beat analyst forecasts. These associations are not significant for firms that did not aggressively recognize tax benefits prior to FIN 48 adoption, suggesting that firms̕ financial reporting aggressiveness is positively associated with firms̕ level of tax aggression.
Download or read book Financial and Accounting Guide for Not for Profit Organizations written by Malvern J. Gross and published by John Wiley & Sons. This book was released on 2010-05-03 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This Seventh Edition is filled with authoritative advice on the financial reporting, accounting, and control situations unique to not-for-profit organizations. It contains discussions of the accounting and reporting guidelines for different types of organizations, complete guidance on tax and compliance reporting requirements, illustrated explanations of various types of acceptable financial statements, and much more!"--Publisher's Website.
