November 8, 2007

FIN 48 Effective Date Deferred

On November 7, the FASB agreed to defer the effective date in FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes, for nonpublic companies. FIN 48 was issued in July 2006, and had an effective date of years beginning after December 15, 2006 (2007 for most nonpublic entities). The FASB approved a one-year deferral until periods beginning after December 15, 2007 for nonpublic companies. This deferral does not apply to those nonpublic companies that have already adopted FIN 48.

In considering the deferral, the FASB cited complications associated with “pass-through” entities, for example, S corporations, as well as other concerns that the Private Company Financial Reporting Committee identified in a letter sent to the FASB.

The formal deferral extension will be set forth in a FASB Staff Position, that will be issued in exposure form for a 30-day period.

As always, please call your partner/manager contact with Bober, Markey, Fedorovich & Company with any questions you might have.

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