The Financial Accounting Standards Board recently released FASB Interpretation 48 (FIN 48), which provides guidance on FASB Statement 109 (FAS 109) and describes the standard for recognizing and measuring the benefit or liability from tax positions reflected in financial statements
In the President's Page (January/ February 2006), Colleen Cunningham asserted that general-purpose financial statements
are trying to do too much.
The publication provides illustrative financial statements
and related disclosures for non-governmental not-for-profit organizations, other than healthcare providers.
2 to provide guidance in circumstances where the successor accountant is engaged to report on a restatement adjustment with respect to prior-period financial statements
that have been restated while indicating that a predecessor accountant reported on the financial statements
of the prior period before restatement.
Total assets shown on Schedule L, line 15, column (d), must equal the corporation's total assets (or, for a consolidated group, all members' total assets) as of the last day of the tax year, and be the same total assets reported by the corporation (or by each member) in its financial statements
Nevertheless, the presentation of financial statements
now is a central focus of senior management of publicly traded (and many private) companies.
Because of a heavy workload, John's accounting firm provided him with minimal guidance--especially the risks involved in auditing and reviewing the financial statements
of a large corporation with significant accounts receivable.
Broadly speaking, users of financial statements
can be categorized as internal and external.
The committee's report recommends actions to improve (1) the financial reporting process, (2) published financial statements
and (3) the conduct of audits.
In financial statements
prepared on the accrual basis of accounting, employers should recognize a liability and expense for voluntary termination benefits (for example, early-retirement incentives) when the offer is accepted and the amount can be estimated.
965(c)(1) term "applicable financial statements
," which comes into play when computing the deduction's upper limit.