Materiality and Contingent Tax Liability Reporting

By Cristi A. Gleason, Lillian F. Mills. 2002

218 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/019b0aaf79cb040533dfd166b7bc12c3b1ac0403

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

Citations in the corpus

What Can We Infer about a Firm's Taxable Income from Its Financial Statements? (2003, background): “Gleason and Mills (2002) examine the financial statement disclosures regarding tax loss contingencies of 100 large manufacturing firms over a nine–year period.”
An Empirical Examination of Corporate Tax Noncompliance (2005, background): “Gleason and Mills (2002) use proposed deficiencies to evaluate financial statement disclosures of contingent tax liabilities.”
The taxman cometh: Does tax uncertainty affect corporate cash holdings? (2017, unknown): “However, before FIN 48, the amount of tax reserve was almost never separately disclosed (Gleason and Mills 2002), making it”
Taxable Income, Future Earnings, and Equity Values (2004, methodology): “10 Following previous research (e.g., Gleason and Mills 2002 ), we measure the current portion of the income tax expense as the sum of current federal (Compustat #63) and foreign (#64) income taxes, or, when either of these amounts is missing, as the difference between total income tax expense (Com”
Do Auditor-Provided Tax Services Improve the Estimate of Tax Expense? (2007, background): “Gleason and Mills (2002) show tax footnotes contained few disclosures about tax reserves.”
Beauty is in the eye of the beholder: The effect of corporate tax avoidance on the cost of bank loans (2014, methodology): “The fact that few firms disclosed tax reserves prior to FIN 48 is not surprising and is consistent with the evidence in other FIN 48 studies such as Gleason and Mills (2002). We find that the interaction variable in the difference-in-differences test remains positive and significant in this alternat”
What Does Tax Aggressiveness Signal? Evidence from Stock Price Reactions to News About Tax Aggressiveness (2007, unknown): ““Treasury Seems to Ease Curbs on Tax Shelters.””
Firm and Investor Responses to Uncertain Tax Benefit Disclosure Requirements (2013, unknown): “2 Consistent with firms being particularly averse to disclosure in our setting, Gleason and Mills (2002) find that many large firms with material IRS deficiencies recognize, but do not disclose, a liability pre-FIN 48.”
The Effect of Tax Authority Monitoring and Enforcement on Financial Reporting Quality (2014, unknown): “Therefore, the measure implicitly assumes that returns take about one year to audit.30 While the IRS asserts that on average this is a good estimate, Gleason and Mills (2002) suggest that on average, the very largest corporate filers take about three years to audit.”
Incentives for Tax Planning and Avoidance: Evidence from the Field (2014, unknown): “(2011), Graham et al. (2011), Hanlon (2012), and Desai and Dharmapala (2009a).”
A review of tax research (2010, unknown): “Unlike the valuation allowance, the tax contingency reserve is not limited by the amount of deferred tax assets, was very rarely disclosed prior to FIN 48 (Gleason and Mills, 2002), and”
Does Tax Risk Affect Investor Valuation of Tax Avoidance? (2017, background): “…statements, providing investors with additional information regarding firms’ tax positions that was generally not available in the pre-FIN 48 period (Gleason & Mills, 2002).23 Koester (2012) documents that investors positively price UTBs, suggesting that while the firm may have to return a portion…”
Taxes and Financial Constraints: Evidence from Linguistic Cues (2015, unknown): “Because disclosing 28 contingent tax liabilities or reserves may reveal tax strategies, firms tend to concede their existence but rarely disclose their values pre FIN-48 (Gleason and Mills (2002), Blouin and Tuna (2007)).”
Materiality Judgments and the Resolution of Detected Misstatements: The Role of Managers, Auditors, and Audit Committees (2012, background): “16 Gleason and Mills (2002) define normal income as the greater of a company’s pretax income or five percent of assets, where five percent of assets is the median pretax return on assets for their 100 large manufacturing companies over a nine-year period.”
Pre-Empting Disclosure? Firms’ Decisions Prior to FIN No. 48 (2010, background): “Gleason and Mills (2002) and Gupta and Laux (2009) find that firms often release reserves when they settle a dispute with a tax authority.”
What Does Tax Aggressiveness Signal? Evidence from Stock Price Reactions to News about Tax Shelter Involvement (2009, background): “See Gleason and Mills (2002) for a discussion of how little was disclosed about the tax contingency reserve.”
Audit Fees and Book-Tax Differences (2012, unknown): “Tax expense can also represent a source of audit risk, either as a source of internal control weakness (Gleason, Rego and Pincus 2008) or due to challenges in estimating tax reserves and related earnings management (Dhaliwal, Gleason and Mills 2004, Gleason and Mills 2002).”