Describe FIN 48 (now ASC 740-10) and what is meant by uncertain tax positions. What were the
Question:
- Describe FIN 48 (now ASC 740-10) and what is meant by “uncertain tax positions.”
What were the FASB’s objectives in issuing this interpretation?
Download the fiscal year 2009 10-K’s for the following five companies from the SEC website:
Temple-Inland Inc.
Weyerhauser Company
Graphic Packaging Holding Company
Boise Inc.
Rock-Tenn Company
Using these financial statements, address the following questions for each company:
How much did each company request in this tax refund from the Internal Revenue Service in 2009?
How much did each company receive in the tax refund? In other words, how much had each company received as of the 2009 fiscal year-end, how much was each company’s receivable related to the tax credit, and what was the total? How much of the refund did each company include in the pre-tax book income?
Did the company record an unrecognized tax benefit related to the tax refund? If the company did not discuss it, you may assume that the answer is no.
If the company did record an unrecognized tax benefit, what percentage of the maximum potential benefit did they reserve?
What were the net operating loss balances at each company?
What were the valuation allowances on deferred tax assets at each company? Did the valuation allowances pertain to the net operating loss carryforwards?
Did the company have any other large and noteworthy differences between book income and taxable income?
Expert Answer:
Describe FIN 48 now ASC 74010 Many taxpayers are required by FASB Interpretation No 48 Accounting fo... View the full answer
