Pre-Empting Disclosure? Firms' Decisions Prior to FIN No. 48

被引：59

作者：

Blouin, Jennifer L. ^{[1
]}

Gleason, Cristi A. ^{[2
]}

Mills, Lillian F. ^{[3
]}

Sikes, Stephanie A. ^{[1
]}

机构：

[1] Univ Penn, Philadelphia, PA 19104 USA

[2] Univ Iowa, Iowa City, IA 52242 USA

[3] Univ Texas Austin, Austin, TX 78712 USA

来源：

ACCOUNTING REVIEW | 2010年 / 85卷 / 03期

关键词：

accounting for income taxes; tax reserves; disclosure; DEFERRED TAX ASSETS; EARNINGS MANAGEMENT; VALUATION ALLOWANCE; EXPENSE;

D O I：

10.2308/accr.2010.85.3.791

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

FIN No. 48, Accounting for Uncertainty in Income Taxes (FASB 2006), requires firms to disclose tax reserves and to record changes in tax reserves at adoption of FIN No. 48 as cumulative effect adjustments in stockholders' equity. We predict that between the enactment and adoption of FIN No. 48, relative to historical levels, firms settle disputes more often to potentially decrease visibility to the IRS and release reserves more often to reduce scrutiny and increase earnings (as opposed to retained earnings). We analyze 2005 and 2006 10-Qs and 10-Ks for the 100 largest nonfinancial, nonutility firms followed by analysts. Between enactment and adoption of FIN No. 48, relative to historical levels, firms report more settlements with tax authorities and release reserves more frequently. In addition, firms with higher IRS deficiencies are more likely to settle disputes. Between enactment and adoption of FIN No. 48, firms increased earnings by releasing $4.4 billion of tax reserves, nearly equaling the $4.5 billion released at adoption.

引用

页码：791 / 815

页数：25

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