PwC alternatives alert, October 16, 2008

FASB proposes another one-year deferral of FIN 48 for all nonpublic entities

On October 15, 2008, the Financial Accounting Standards Board (FASB) voted to propose another one-year deferral of the effective date of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for all nonpublic entities.

The FASB's proposal is broader than the deferral discussed earlier this month, which would have been applicable only to certain nonpublic pass-through entities.

The FASB's decision will be issued as a proposed FASB Staff Position and is expected to be released shortly. The proposal will be subject to a public comment period.

We continue to believe that the financial statements of alternative investment funds should disclose the expected impact of FIN 48 adoption as a "Type II" subsequent event. As a result, management should continue to update their analysis of uncertain tax positions in preparation for December 31, 2008 year ends.

Specific advice and assistance may be sought from your PricewaterhouseCoopers engagement team or from any of the partners in our Alternative Investment Funds Group.