November 2007

FIN 48 Implementation Date Extended for Nonpublic Companies

On November 7, 2007, the Financial Accounting Standards Board (FASB) postponed the effective date for private company compliance with FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (FIN 48).

Originally effective for fiscal years beginning after December 15, 2006, this recent decision defers FIN 48 implementation until fiscal years beginning after December 15, 2007 for nonpublic entities, such as partnerships and S corporations, that have not already started to adopt the rule.

This decision, issued as a staff position, follows a request from FASB’s Private Company Financial Reporting Committee, and will become a formal deferral following the completion of a 30-day public comment period.

Governing how companies should financially account for uncertain tax positions, FIN 48 provides guidance for FASB Statement No. 109, “Accounting for Income Taxes,” (FASB 109), and became effective for public companies last December.

The rule requires that companies review all tax positions taken in any year within the statute of limitations, determine whether those positions meet FIN 48’s “more likely than not” sustainability standard, and disclose funds held in reserve should those positions be successfully challenged.

To learn more about how your company can best take advantage of this recent extension to ensure proper compliance with FIN 48, please contact the business and tax advisory specialists at Cherry, Bekaert & Holland.

FOR MORE INFORMATION, PLEASE CONTACT:
Brooks Nelson, Partner
bnelson@cbh.com
1.800.849.8281
www.cbh.com

About Cherry, Bekaert & Holland, L.L.P. (CB&H)

As the Southeast’s accounting and consulting Firm of Choice, Cherry, Bekaert & Holland, L.L.P. (CB&H) is uniquely positioned to provide quality, cost-effective and value-added services to a diverse and successful client base. The Firm sets itself apart by delivering the extensive industry specialization and service opportunities of a national firm, but with the accessibility, service continuity and level of personal relationship expected from a local business. Ranked nationally among CPA firms, CB&H’s resource network stretches regionally across six states, including the large metro markets of Atlanta, Charlotte, Hampton Roads, Raleigh, Richmond, Tampa and Washington D.C., and nationally and internationally through an alliance with Baker Tilly International, a worldwide network of independent accounting firms.