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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4003
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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I need help understanding FAS141(R) tax implications on contingent

Resolved Question:

I need help understanding FAS141(R) tax implications on contingent liability.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor :

Under FAS 141(R), the determination of unrecognized tax benefits of the acquired entity as of the acquisition date will be subject to the measurement and recognition provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). Any changes to the unrecognized tax benefits during the measurement period (that do not relate to facts and circumstances that existed as of the acquisition date) and subsequent to the measurement period are recorded as an adjustment to income tax expense. Under prior guidance, any changes in acquired tax contingencies would generally have been an adjustment to goodwill and other intangibles.

NPVAdvisor :

ANd remember, the accounting treatment for changes to uncertain tax positions is one exception to the prospective application of FAS 141(R). Regardless of the acquisition date of a business combination, changes in acquired tax uncertainties beyond the measurement period are recorded as adjustments to income tax from continuing operations.


 

Expert:  Lane replied 1 year ago.
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Customer: replied 1 year ago.

Thanks for the article but I need a lot more in-depth analyses including examples on how to treat the contingent liabilities in asset purchase. Appreciate any help you can provide.

Expert:  Lane replied 1 year ago.


Joe,

I should probably opt out and see if someone else may be able to help you here. (someone more qualified than I in this arena).

I am not sure, however, that more than one or two of the pros here would do you service - depending on how much detail you can provide...especially when we look at pricing here (this is an $8 payout to the expert that answers IF you rate positively).

Quite honestly, depending on the nature of the transaction and the level of detail that will be needed to answer your question, I'm not so sure that this is right venue.
Good luck
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4003
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 2 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.

You shouldn't have ...

Here's another presentation that MAY get closer.

... section on contingent liabilities under the new standard, aw well as a good overview of differences between the two (FAS141 and FAS 141(r))

https://app.box.com/s/gec6yhwmid24282j2kj8

... hope it might provide some context, if nothing else.

Lane
Expert:  Lane replied 1 year ago.

Thanks
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4003
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 2 other Tax Specialists are ready to help you

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