ASC 740 (FIN 48) allows companies to choose their own level of certainty in reporting uncertain tax positions in their financial statements.

Question

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ASC 740 (FIN 48) requires companies to report uncertain tax positions based on a "more-likely-than-not" threshold, which allows them to choose their own level of certainty. This means that they must be able to support that it is more likely than not that the position will be sustained upon examination.

ASC 740 (FIN 48) Allows Companies to Choose Their Own