The tax reporting environment is evolving. Companies are facing greater scrutiny from investors, auditors, regulators and standard setters. In particular, consistency and accuracy of reported figures in financial statements are key drivers in the advancement of accounting standards.

On 13 July 2006 the Financial Accounting Standards Board (FASB) issued Interpretation 48 (FIN48) setting out the new regulations for calculation of provisions and disclosures of uncertain tax positions. This latest development will increase pressure on audit requirements for both SEC registrants and other groups. The corresponding views of the International Accounting Standards Board (IASB) are expected by the end of 2006. Despite some differences which have emerged through the consultation stages, we anticipate a similar level of data analysis and disclosures will be required.

Our software solution, Abacus Uncertainties, has been designed to assist the end to end process of accounting for uncertain tax positions, from the collection of required data from local reporting units to the provision of consolidated and entity level entries and disclosures for the financial statements. The system has been designed with Sarbanes Oxley Act 2002 s404 compliance in mind so built in controls, visibility and full audit trail are primary considerations.

Learn more in our detailed product card below.