October 16, 2008

FASB Defers FIN 48 for All Private Companies

On Wednesday, Oct. 15, the Financial Accounting Standards Board (FASB) decided to apply the deferral of FIN 48, entitled Accounting for Uncertainty in Income Taxes, to all private companies, not just pass-through entities as was previously determined on Oct. 1. This means no private companies need to implement FIN 48 in 2008.

More specifically, the FASB issued a proposed FASB Staff Position [FSP] that will defer the FIN 48 guidance for all private companies until [at least] fiscal years beginning after December 15, 2008. To get the guidance finalized quickly, the FASB will have only a 30-day comment period.

The FASB will also issue a separate FSP that will provide guidance for pass-through entities and provide amendments to the existing disclosure requirements for private companies. This second FSP is planned to be finalized and issued during the first quarter of 2009.

If you have questions or would like assistance with implementation of this new standard at your company, please contact one of the following BMF professionals:

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