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Accounting for income taxes

The income tax line in a corporate P&L can be incredibly complex. How can Grant Thornton help?

  • We can minimize potential review comments by your external auditor on accounting for income tax matters, which will allow for more timely financial statement closings. 
  • We can improve integration of your tax compliance and accounting functions, which will allow you to use your valuable internal resources for other critical areas.

ASU 740 (formerly FIN 48)
In September 2009, the FASB issued Accounting Standards Update (ASU) 2009-06, Implementation Guidance on Accounting for Uncertainty in Income Taxes and Disclosure Amendments for Nonpublic Entities, which modifies the guidance on uncertain tax positions in FASB Accounting Standards Codification™ (ASC or Codification) 740, Income Taxes (formerly FASB Interpretation 48, Accounting for Uncertainty in Income Taxes), as follows:

  • Provides implementation guidance that is applicable for all entities
  • Amends the disclosure requirements for nonpublic entities by eliminating the requirements for certain disclosures

The amendments are effective for interim and annual periods ending after Sept. 15, 2009, for entities that previously adopted the uncertain tax position guidance in ASC 740. For all other entities, the amendments are effective for annual financial statements for fiscal years beginning after Dec. 15, 2008.

Contact one of our tax accounting and risk advisory services specialists to discuss your specific situation:

Randy Robason
National Partner-in-Charge
214.283.8191

April Little
Director
832.476.3730

Related documents

  •   FIN 48: Best practices for private companies 2010 (155 KB)

    Privately held companies got a two-year respite from FIN 48, but the time has come to buckle down and implement it for their 2009 year-end (technically, their first year beginning after Dec. 15, 2008).

  •   Modifications to uncertain tax position guidance (October 8, 2009) (81 KB)

    In September 2009, the FASB issued Accounting Standards Update (ASU) 2009-06, Implementation Guidance on Accounting for Uncertainty in Income Taxes and Disclosure Amendments for Nonpublic Entities, which modifies the guidance on uncertain tax positions in FASB Accounting Standards Codification™ (ASC or Codification) 740, Income Taxes (formerly FASB Interpretation 48, Accounting for Uncertainty in Income Taxes), as follows: provides implementation guidance that is applicable for all entities and amends the disclosure requirements for nonpublic entities by eliminating the requirements for certain disclosures.

  •   FIN 48: Now for private and public entities by Fred Murray (313 KB)

    Grant Thornton's Fred Murray discusses the coming application to nonpublic entities of FASB Interpretation 48, Accounting for Uncertainty in Income Taxes: An Interpretation of FASB Statement No. 109. Originally published as a series of articles in BNA Daily Tax Report, Aug. 31-Sept. 4, 2009.

  •   FIN 48: New and complex challenges for non-public companies by Randy Robason (70 KB)

    Are you a CEO or CFO of a non-public entity that issues financial statements for use by anyone outside your organization? Many C-suite executives in the private sector have yet to realize that the same recognition and measurement requirements apply to all companies reporting under GAAP, their company included.

  •   Best practices for handling FIN 48 (76 KB)

    The adoption of FIN 48 will require a fresh look at tax exemption and exposure. Read all about it in this article by Laura Kenney and Thacher Smith from RIA Thomson's Taxation of Exempts journal, May/June 2008.

  •   Private companies will feel the impact of FIN 48 (37 KB)

    Find out how FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, or FIN 48, will affect your company in this article by tax partner Ted Thomas. Reprinted with the permission of Financial Executives International from the July/August Financial Executives magazine.

  • This website supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document we encourage you to contact us or an independent tax advisor to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with, or attached to this document is not intended by Grant Thornton to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

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Current issues affecting corporate tax departments

Renewed attention on tax planning has forced tax departments to do even more with less. Find out how in-house tax executives are dealing with often competing issues.

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IRS to require disclosure of uncertain tax positions on tax returns

The new requirements would apply to business taxpayers with over $10 million in assets who are required to identify and quantify uncertain tax positions under ASC 740.

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