SUMMARY OF BOARD DECISIONS

Summary of Board decisions are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in redeliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue a final standard.

April 15, 2009 Board Meeting

Applicability of Interpretation 48 for pass through entities and tax exempt not-for-profit entities. The Board discussed issues presented in comment letters related to a decision at the December 17, 2008, meeting to proceed with the guidance phase for FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, for pass-through and tax exempt not-for-profit entities. The Board made the following decisions in response to those comment letters and additional feedback.

  1. The Board decided to provide guidance in narrative form with examples as needed to clarify the application of the guidance.

  2. The Board decided not to provide guidance related to whether a tax is or is not an income tax.

  3. The Board decided that attribution of the income tax to the entity or its owners should be based on the laws and regulations of the taxing authority rather than on who is responsible for payment of the income taxes.

  4. The Board decided that the proposed guidance would clarify that an entity’s status as a pass-through entity or a tax exempt not-for-profit entity is a tax position.

  5. The Board decided to provide guidance that explains that a consolidating entity should include uncertain tax positions recorded by its subsidiaries in its consolidated financial statements, regardless of the tax status of the consolidating parent. Additionally, the Board indicated that when referencing consolidation standards, the proposed guidance should make it clear that it is referencing GAAP consolidation standards, not tax consolidation standards.

  6. The Board decided that the proposed guidance would be effective upon issuance for entities that currently apply Interpretation 48, and upon adoption of Interpretation 48 for those entities that have deferred the application of that Interpretation. Certain nonpublic entities may defer the effective date of Interpretation 48 to the annual financial statements for fiscal years beginning after December 15, 2008.

The Board directed the staff to proceed to a draft of a proposed FSP for vote by written ballot, with a 30-day comment period.