pr news Accounting for Income Taxes Poses Opportunities for Risk Mitigation new update

Albert Einstein said, “The hardest thing in the world to understand is the Income Tax.”  The complexity of tax draws professionals to the field, and mosttax directors agree that one of their most important and complex responsibilities is accounting for income taxes. This is particularly true for public companies that are required to submit financial statements to the Securities and Exchange Commission. Sarbanes-Oxley (Sox), introduced in 2002, remains an important measure of a company’s ability to demonstrate controls andgive investors the comfort of reliable financial reporting, greater transparency, and accountability. Accounting for income taxes is so complex that a recent BDO study identified taxes as the fourth most common reason for restatements, accounting for approximately 13 percent  of all restatements. Restatements undermine investor confidence and have negative impactson market capitalization.Mitigating the risks associated with accounting for income taxes and providing transparent and well communicated results requiresattention to people, processes, and systems.