User:Jeffreywwu

FIN 48 is the Financial Accounting Standards Board's ("FASB") interpretation in Accounting for Uncertain Tax Positions (FAS 109).

There are two components to FIN 48: 1) Recognition/Derecognition and 2) Measurement. According to FIN 48, a tax position should be recognized if it meets the "probable of being sustained" threshold, which is higher than the more common "more likely than not" threshold (greater than 50%). Subsequently, the position must be "derecognized" if it falls below the "more likely than not" threshold.

If the tax positon meets the first prong under FIN 48, then it must be recognized as a "best estimate" of the tax benefit that is probable to be sustained under audit.