The application of ASC 740 to an uncertain tax position allows tax benefits to be recognized in financial statements only when it is determined that it is more likely than not that the tax position can be sustained or when the position is ultimately settled via an audit, a negotiation, or a court decision.

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ASC 740 requires recognition of tax benefits only when it is more likely than not that the tax position will prevail or when the position is ultimately settled.

The Application of ASC 740 to an Uncertain Tax Position