The Financial Accounting Standards Board is planning to finalize its position on how companies should present uncertainties about tax issues in a way that gives companies some more flexibility than originally planned.
At a recent board meeting, members wrestled with how a company should show the financial impact of a position they are taking with tax authorities if they aren’t certain whether agencies like the Internal Revenue Service will allow the tax benefit the company claims. The question applies when a company is seeking a tax benefit that may be subject to challenge or debate, such as with an aggressive tax shelter.
