ASC 740, Part 4 - Uncertain Tax Positions

When accounting for income taxes under ASC 740, companies are required to consider whether or not positions taken on their tax returns are more likely than not to be sustained upon audit. This video walks through the 2 step process in determining whether or not a "UTP - liability" should be recorded in the financials for positions that are uncertain in nature. A rollforward example is also provided to show the various components that need to be considered when recording a UTP.