When recognizing benefits from uncertain tax positions in their financial statements, what level of confidence should corporations have that those positions will be sustained? How do they determine whether or not their positions meet that threshold for recognition?And if the position meets that recognition threshold, what share of the related benefit should be included in the entity's financial statements? What actions or events could change that recognition status for future financial statements?

To address such questions, the Financial Accounting Standards Board recently issued an exposure draft of "Accounting for Uncertain Tax Positions," an interpretation of Statement No. 109, Accounting for Income Taxes. The proposed interpretation is intended to provide clearer standards for assessing and recognizing such positions and a more uniform basis for evaluating tax-related information presented in financial statements. The interpretation encompasses all tax positions to which adjustments are not barred under relevant statutes of limitations.

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