Gracehaven Inc.

Part X : FIN48 Footnote

“The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10 (formerly Interpretation No. 48), Accounting for Uncertainty in Income Taxes. FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB ASC 740-10-125 (formerly FASB Statement No. 109) Accounting for Income Taxes. FASB ASC 740-10 also prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. In addition, FASB ASC 740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.The Organization treats tax positions taken using the more-likely-than-not recognition threshold. Tax positions are measured in the year that the Organization believes that the position is more-likely-than-not to be sustained. Any positions that are not expected to be sustained will be recorded as a liability. The Organization believes that none of the tax positions taken would be material to the financial statements. Interest and penalties, if any, are included in expenses in the statements of activities. As of June 30, 2017 and 2016, the Organization had no uncertain tax positions that qualify for recognition or disclosure in the financial statements.The Organization is no longer subject to examination by the Internal Revenue Service for years prior to June 30, 2014. The Organization is not currently under audit nor has the Organization been contacted by any jurisdiction. Based on the evaluation of the Organization's tax positions, management believes all tax postions taken would be upheld under an examination. Therefore no provision for the effects of uncertain tax positions have been recorded for the fiscal year ended June 30, 2017 and 2016.”