Economic consequences of increasing the conformity in accounting for uncertain tax benefits

Journal of Accounting and Economics

Volumn 46, Issue 2-3, 2008, Pages 261-278

  Frischmann, Peter J ^a   Shevlin, Terry ^b   Wilson, Ryan ^c  

^a IDAHO STATE UNIVERSITY   (United States)

^b UNIVERSITY OF WASHINGTON   (United States)

^c UNIVERSITY OF IOWA   (United States)

Author keywords

Disclosures; Event study; Tax contingency; Taxes; Uncertain tax benefits

Indexed keywords

EID: 56249083103     PISSN: 01654101     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jacceco.2008.08.002     Document Type: Article

References (33)

1. Berger P. Explicit and implicit tax effects of the R&D tax credit. Journal of Accounting Research 2 (1993) 131-171
2. Blouin, J., Tuna, I., 2007. Tax contingencies: cushioning the blow to earnings? Working paper, The University of Pennsylvania.
3. Blouin, J., Gleason, C., Mills, L., Sikes, S., 2007. Do firms eat their tax cookies before FIN 48 reveals the cookie jar? Working paper, The University of Pennsylvania.
4. Desai M.A. The divergence between book and tax income. In: Poterba J. (Ed). Tax Policy and Economy Vol. 17 (2003), MIT Press, Boston 169-206
5. Desai M.A., and Dharmapala D. Corporate tax avoidance and high powered incentives. Journal of Financial Economics 79 (2006) 145-179
6. Dhaliwal D., Gleason C., and Mills L. Last-chance earnings management: using the tax expense to meet analysts' forecasts. Contemporary Accounting Research 21 2 (2004) 431-459
7. Drucker J. How accounting rule led to probe. The Wall Street Journal (2007) A5 (September 11)
8. Dunbar, A., Kolbasovsky, L., Phillips, J., 2007. FIN 48 Adoption Disclosures. University of Connecticut working paper.
9. Dyreng S., Hanlon M., and Maydew E.L. Long-run corporate tax avoidance. The Accounting Review 83 (2008) 61-82
10. Espahbodi H., Espahbodi P., Rezaee Z., and Tehranian H. Stock price reaction and value relevance of recognition versus disclosure: the case of stock-based compensation. Journal of Accounting and Economics 33 (2002) 343-373
11. Financial Accounting Standards Board (FASB). Accounting for Contingencies (1975), FASB, Norwalk, CT (Statement of Financial Accounting Standards no. 5)
12. Financial Accounting Standards Board (FASB). Accounting for Income Taxes (1992), FASB, Norwalk, CT (Statement of Financial Accounting Standards no. 109)
13. Financial Accounting Standards Board (FASB). Accounting for Uncertainty in Income Taxes: An Interpretation of FASB Statement no.109 (2006), FASB, Norwalk, CT (FASB Interpretation no. 48)
14. Financial Accounting Standards Board (FASB), 2006b. Minutes of the May 10, 2006, Board Meeting - Uncertain Tax Positions: Disclosure and Sweep Issues. May 16. 〈http://www.fasb.org/board_meeting_minutes/05-10-06_utp.pdf〉.
15. Frank M., Lynch L., and Rego S. Are financial and tax reporting aggressiveness reflective of broader corporate policies. The Accounting Review (2008) (Forthcoming 2009)
16. Gleason C.A., and Mills L.F. Materiality and contingent tax liability reporting. The Accounting Review 77 2 (2002) 317-342
17. Gupta, S., Laux, R., 2007. Do firms use tax cushion reversals to meet earnings targets? Michigan State University working paper.
18. Hanlon M. What can we infer about a firm's taxable income from its financial statements?. National Tax Journal 56 4 (2003) 831-863
19. Hanlon, M., Slemrod, J., 2007. What does tax aggressiveness signal? Evidence from stock price reactions to news about tax aggressiveness. University of Michigan working paper.
20. Leone, M., 2007. FIN 48 Shocker. CFO.com (September 11).
21. Leone M., Shaw, H., 2007. Tax stunner: FASB rejects FIN 48 delay. CFO.com (January 17).
22. Lisowsky, P., 2008. "Seeking Shelter": Empirically modeling tax shelters and examining their link to the contingent tax liability reserve. Boston University working paper.
23. Manzon G., and Plesko G. The relation between financial and tax reporting measures of income. Tax Law Review 55 (2002) 175-214
24. Mills L.F. Book-tax differences and internal revenue service adjustments. Journal of Accounting Research 36 (1998) 343-356
25. Mills, L.F., Robinson, L.A., Sansing, R.C., 2007. FIN 48 and tax compliance. University of Texas and Tuck School of Business at Dartmouth working paper.
26. Murray A., and Birnbaum J. Showdown at Gucci Gulch (1988), Random House, New York
27. Nichols N., Briggs J., and Baril C. And the impact is first-quarter results from adopting FIN 48. Tax Notes (2007) 377-388 (July 30)
28. Schipper K., and Thompson R. The impact of merger-related regulation on the shareholders of acquiring firms. Journal of Accounting Research 21 (1983) 184-221
29. Sefcik S., and Thompson R. An approach to statistical inferences in cross-sectional models with security abnormal returns as dependent variables. Journal of Accounting Research 24 (1986) 316-334
30. Shevlin T., and Porter S. The corporate tax comeback in 1987: Some further evidence. Journal of the American Taxation Association (Spring) (1992) 59-79
31. Verrecchia R. Essays on disclosure. Journal of Accounting and Economics 32 (2001) 97-180
32. Wilson, R., 2008. An examination of corporate tax shelter participants. University of Iowa working paper.
33. Yoon, L., 2006. That uncertain something: FASB and taxes. CFO.com (January 16), Online edition.