Intermediate Accounting 2 answeres Essay Example | Topics and Well Written Essays - 500 words

Intermediate Accounting 2 answeres - Essay Example Additionally, the organization should deduce that the position will be examined by legitimate taxing authority with full concept and awareness of the significant when information when evaluating whether a tax position has met the more probable than not recognition threshold. Measurement process: this is the second process that calls for measurement of a tax position that meets a threshold of more likely than not recognition in order to determine the benefit that should be recognized in the statements of financial position of respective organization or enterprise. A tax position, that has 50% benefits, is realized upon final settlement. IFRS requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheets while, on the other hand, U.S.GAAP allows noncurrent and current classification of liabilities and assets leading to a slight difference. IFRS does not give any specific guideline for the purposes of recognizing deferred tax liabilities that are associated with uncertain tax position while U.S.GAAP provides precise guidance for the recognition of the deferred tax liabilities. Other countries have a well-elaborated retirement systems that do not give rise to any suspicion. For example, a country like Australia, there is a government mandate for universal participation of workers in retirement plan (Unilever 2007). Netherlands have laws that require workers’ pension plans to be converted into lifetime annuities so as not to spend all their savings early. Unlike other countries, U.S’s contributions are of low rate to assure retirement adequacy for the majority of middle-class workers and some other workers withdrawing their sums before the retirement age. United states have the authorization of employers paying 6.2 percent of their salaries to social security that is time and again overlooked drawing much attention to the accounting pension than other foreign countries