TaxNewsFlash-United States

January 23, 2008
No. 2008-39

FASB Defers Interpretation 48 for Nonpublic Entities

The FASB decided that nonpublic entities may defer applying Interpretation 48’s requirements on accounting for uncertainty in income taxes until they prepare their annual financial statements for the year beginning after December 15, 2007—unless they have already issued a complete set of annual financial statements fully reflecting the Interpretation’s requirements or are nonpublic subsidiaries of public entities that report in U.S. GAAP.

The FASB’s decision to permit nonpublic entities to defer applying Interpretation 48 differs from the proposed deferral, which would have applied to nonpublic entities that had not already applied Interpretation 48. The FASB Staff Position incorporating these decisions is expected to be issued soon.

Nonpublic entities permitted to defer applying Interpretation 48 will not be required to apply its provisions to their interim financial statements in the year of adoption because the deferral applies to annual periods beginning after December 15, 2007.

KPMG has prepared a two-page discussion of this development. For a printable version of this report: Defining Issues: FASB Defers Interpretation 48 for Nonpublic Entities

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