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The Financial Accounting Standards Board (FASB) issued a new effective date for FASB Interpretation No. 48, a suggestion made by the UBIT Steering Committee in a recent comment letter.
On February 1, FASB announced FIN 48 would be effective for fiscal years beginning after December 15, 2007. An earlier FASB staff position (FAP) would have made FIN 48 applicable to financial statements after December 15, 2006. FIN 48 applies to certain non public enterprises and nonpublic not-for-profit organizations, including credit unions.
FIN 48, Accounting for Income Taxes, is an Interpretation of FASB No. 109, which increases the relevancy and comparability of financial reporting by clarifying the way companies account for uncertainty in income taxes. Credit unions file financial statements on a GAAP basis with their applicable regulator.
The UBIT Steering Committee argued that FIN 48 should be deferred for credit unions considering the unique tax interpretation issues arising from the Internal Revenue Service’s issuance of Technical Advice Memoranda (TAMs) on unrelated business income tax (UBIT). The UBIT Steering Committee also pointed out that given the timing of the TAMs, accounting firms did not emphasize to credit unions to review UBIT exposure under the FIN 48 guidance.
NASCUS is a member of the UBIT Steering Committee.
Links:
UBIT Steering Committee comment letter
More information on FIN 48
NASCUS UBIT Resources (Member log-in required.)
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