Churchside Village Inc

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“Accounting Standards Codification (ASC) Topic 740 Accounting for Uncertainty in Income Taxes seeks to reduce the significant diversity in practice associated with financial statement recognition and measurement in accounting for income taxes and prescribes the recognition threshold and measurement attribute for disclosures of tax positions previously taken or expected to be taken on an income tax return. Not-for-profit entities are also within the scope of ASC Topic 740. An entity must consider whether it has engaged in activities that jeopardize its current tax exempt status with the Internal Revenue Service. Furthermore, the entity must determine whether it has any unrelated business income, which may be subject to federal or state income taxes. Churchside Village analyzed its filing positions in the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Churchside Village has also elected to retain its existing accounting policy with respect to the treatment of interest and penalties attributable to income taxes, and continues to reflect any charges for such, to the extent they arise, as a component of its administrative services expenses. The adoption of ASC Topic 740 has no significant impact on Churchside Village. Churchside Village has evaluated the provisions of ASC Topic 740. The evaluation was performed for the tax years 2014 through 2016, the years which remain subject to examination by major tax jurisdiction. Churchside Village concluded that there are no significant uncertain tax positions requiring recognition in Churchside Villages financial statements. Churchside Village does not have any amounts accrued for interest and penalties related to UTBs at July 18, 2016, and it is not aware of any claims for such amounts by federal or state income tax authorities.”