TaxNewsFlash-Exempt Organizations

October 16, 2008
No. 2008-101

PRINTABLE VERSION

FASB: Additional One-Year Deferral of Interpretation 48 for Nonpublic Entities

The FASB reversed a previous decision by choosing to propose an additional one-year delay of the effective date of Interpretation 48,* on accounting for uncertainty in income taxes, for all nonpublic entities that have not already applied the Interpretation’s provisions.

* FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes.

The proposal would add to the one-year deferral for nonpublic entities granted in February (FASB Staff Position No. FIN 48-2, Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises (February 1, 2008)).

Assuming the proposed FASB Staff Position is adopted, the effective date of Interpretation 48 for nonpublic entities that have not already applied Interpretation 48 in a full set of annual financial statements would be for periods beginning after December 15, 2008.

Earlier this month, the FASB decided not to propose a deferral for all nonpublic entities, deciding instead to propose a deferral only for pass-through entities. The FASB’s new decision to provide a deferral for all nonpublic entities responded to questions raised about the scope of the proposed deferral for pass-through entities.

The proposal for the additional one-year deferral for nonpublic entities is expected to have a 30-day comment period and request input on specific issues requiring guidance. The FASB plans to issue another Staff Position in 2009 that would provide the guidance on those issues, including guidance on the application of Interpretation 48 to pass-through entities.

For a printable version of this report, prepared by KPMG: Defining Issues: Additional One-Year Deferral of Interpretation 48 for Nonpublic Entities

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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