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US Gaap and FIN-48 Reporting |
Risk Assessment |
| The Financial Accounting Standards Board (FASB) issued interpretation no. 48, Accounting for Uncertainty in Income Taxes- an interpretation of FASB Statement No. 109 (FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes (SFAS 109). This Interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. |
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| With FIN – 48 in application, the risk assessment of tax benefits recognized in the Indian local books of accounts is to be reviewed based on the technical merits of the position and meeting US tax reporting requirements. |
| The services offered by us encompass a wide range of tax issues including: |
- Review of various Tax positions taken by the company and its evaluation under the present tax laws, decided judicial pronouncements, past history of the company, audit developments etc.
- Supporting the review and advice on various tax Positions with clear and unambiguous tax law and more-likely-than-not recognition standards
- Supporting the evaluation with Documentation considering the appropriate level of evidence to hold management’s conclusions, materiality and complexity of the uncertain tax position
- Effective Tax Rates (ETR) Reconciliation
- Reporting under FIN 48 in the defined formats
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