ASC 740 (FIN 48) replaced FAS 5, Accounting for Contingencies, with regard to accounting for uncertain tax positions.

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ASC 740 (FIN 48) did replace FAS 5 with regard to accounting for uncertain tax positions. Under ASC 740, companies are required to recognize, measure, and disclose uncertain tax positions if it’s more likely than not that the position taken on a tax return will be challenged by a tax authority. This replaces the previous guidance under FAS 5 which required recognition of contingent liabilities only if the likelihood of loss was probable and the amount could be estimated with reasonable accuracy.

ASC 740 (FIN 48) Replaced FAS 5, Accounting for Contingencies