Before the FASB issued Financial Accounting Interpretation
48 - Accounting for Uncertainty in Income Taxes in June 2006, companies generally booked their tax expense for financial reporting purposes on the basis of the return "as filed" or to be filed for a tax period.
A principles-based system places the onus on managers--and the auditors--to exercise professional judgment to ensure that the accounting interpretation
is fair and reasonable.
An accounting firm receiving hundreds of thousands of dollars in consulting fees may be reluctant to enforce a strict accounting interpretation
that would anger the client.
The proposal would amend National Council on Governmental Accounting Interpretation
on the other hand, places considerable emphasis on educating accountants as professionals, a natural consequence of an increasingly complex economic operating environment, ever more complex and formal accounting measurement rules, and the need for an accounting interpretation
of economic events in terms of the American emphasis on matching revenues and expenses.
15; American Institute of CPAs Accounting Interpretation
Financial Accounting Interpretation
Number 48, known as "FIN 48," is the latest rule from FASB regarding accounting for uncertainty in income tax positions.
Arguments: On the first issue, those in favor of applying historical cost accounting cite AICPA Accounting Interpretation
The accounting interpretation
issues need to be resolved prior to filing of the Company's Form 10-Q and the release of the financial results for the fiscal third quarter of fiscal year 2008.
The objective of this book is to provide a conceptual framework based on the extensive use of cases so that readers can create their own accounting interpretation
of the hedging strategy being considered.
07 per diluted share, related to the Company's first-quarter 2007 adoption of Financial Accounting Interpretation
The Company has chosen to schedule the announcement of first quarter results pending a review by the Company of an accounting interpretation
by the Company which, as applied to the first quarter results, could be deemed conservative.