Once Determined, an Unrecognized Tax Benefit Under ASC 740 Is

question 20

True/False

Once determined, an unrecognized tax benefit under ASC 740 is not readjusted for subsequent events.
A UTB must be adjusted every reporting period if new information arises that changes management's assessment of the probability of recognition or the measurement amount.

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Definitions:

Groupthink

A situation in which the pursuit of agreement or uniformity within a group leads to choices that are unreasonable or not effective.

Isolated Groups

Communities or social groups that have limited or no contact with other groups, leading to distinct cultural or social development.

Noncohesive Groups

Collections of individuals lacking unity or common bonds, often resulting in decreased group effectiveness and cooperation.

Reducing Groupthink

Strategies and measures aimed at preventing the occurrence of groupthink, a phenomenon where the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.