FASB delays FIN 48 effective date for private companies.

• Position: News update

On Nov. 7, the Financial Accounting Standards Board voted to defer the effective date of FASB Interpretation No. 48 for all nonpublic entities to periods beginning after Dec. 15, 2007. The FASB instructed the staff to develop an FASB Staff Position which will have a 30-day comment period once it is released. This action is a welcome response to a recent letter issued by the Private Company Financial Reporting Committee recommending FASB delay the effective date of FIN 48, Accounting for Uncertainty in Income Taxes, for private companies.

The PCFRC (www.pcfr.org) worked to delay the effective date because it was concerned that many nonpublic entities and their CPA practitioners were not fully aware of FIN 48's implications. These entities and practitioners have not had the necessary time to understand and apply the guidance required by FIN 48 before its effective date. In addition, many nonpublic entities and their CPA...