William A. Ciconte

Sep 28, 2023 | onlinelibrary.wiley.com | Michael Donohoe |Petro Lisowsky |Michael Mayberry |William A. Ciconte

Prior research shows that contingent liabilities do not accurately predict future cash payments due to the managerial discretion afforded by accounting standards. We examine the extent to which current accounting guidance for a material contingent liability—the reserve for unrecognized tax benefits (UTBs) under FIN 48—generates accruals that are predictive of future income tax cash outflows.