Financial Accounting Standards Board

401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116

203-847-0700, Fax: 203-849-9714

For Immediate Release

FASB Proposes Delay of Interpretation 48 for Nonpublic Enterprises

Comments on proposed deferral due on January 18

Norwalk, CT, January 8, 2008—The Financial Accounting Standards Board (FASB) has issued for exposure proposed FASB Staff Position (FSP) FIN 48-b, Effective Date of FASB Interpretation No. 48 for Nonpublic Enterprises.   The FSP proposes to defer the effective date of Interpretation 48 for nonpublic entities to fiscal years beginning after December 15, 2007.  Constituents have until January 18, 2008, to submit written comments on the proposed FSP.

The Board proposed a deferral in response to a recommendation of the Private Company Financial Reporting Committee (PCFRC), which said many nonpublic entities, in particular nonpublic pass-through entities, required more time to study and apply the provisions of Interpretation 48.  Nonpublic entities that have already adopted the provisions of Interpretation 48 would not be eligible for the deferral.  The amendments contained in the proposed FSP clarify that the provisions of Interpretation 48 have been adopted if the nonpublic entity has issued financial information prepared in accordance with U.S. GAAP to third parties.

Interpretation 48 is an interpretation of FASB Statement No. 109, Accounting for Income Taxes, which increases the relevancy and comparability of financial reporting by clarifying the way companies account for uncertainty in income taxes. It makes recognition and measurement more consistent, as well as offering clear criteria for subsequently recognizing, derecognizing, and measuring such tax positions for financial statement purposes.

Constituents with comments on FSP FIN 48-b are encouraged to submit them in writing no later than January 18, 2008, to director@fasb.org, File Reference:  Proposed FSP FIN 48-b.  Those without email should send their comments to "Russell G. Golden, Director of Technical Application and Implementation Activities, FASB, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5166, File Reference:  Proposed FSP FIN 48-b."

About the Financial Accounting Standards Board

Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.

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