Orange County NC Website
1 <br /> 19 <br /> THE BOTANICAL GARDEN FOUNDATION, INC. <br /> NOTES TO FINANCIAL STATEMENTS <br /> Page 13 of 13 <br /> INCOME TAXES <br /> In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards <br /> Codification 740-10 ("ASC 740-10") Accounting for Income Taxes, the Foundation reflects <br /> in the financial statements the benefit of positions taken in a previously filed tax return or <br /> expected to be taken in a future tax return only when it is considered `more-likely-than-not' <br /> that the position taken will be sustained by a taxing authority. The Foundation evaluates its <br /> uncertain tax positions using provisions of ASC 450, Contingencies. Accordingly, a loss <br /> contingency is recognized when it is probable that a liability has been incurred as of the date <br /> of the financial statements and the amount of the loss can be reasonably estimated. The <br /> amount recognized is subject to estimate and management judgment with respect to the likely <br /> outcome of each uncertain tax position. The amount that is ultimately sustained for an <br /> individual uncertain tax position or for all uncertain tax positions in the aggregate could <br /> differ from the amount recognized. <br /> If applicable, penalties and interest assessed by income taxing authorities are included in <br /> general and administrative expenses. Under the statute of limitations, the federal <br /> informational returns of the Foundation for 2008 through 2010 are subject to examination by <br /> taxing authorities. Management evaluated tax positions for the 2008 through 2010 returns, <br /> and concluded that there are no uncertain tax positions and believes there is no income tax <br /> effect on the financial statements. <br /> COMPARATIVE AMOUNTS <br /> The financial statements include certain prior-year summarized comparative information in <br /> total but not by net asset class. Such information does not include sufficient detail to <br /> constitute a presentation in conformity with accounting principles generally accepted in the <br /> United States of America. Accordingly, such information should be read in conjunction with <br /> the Foundation's financial statements for the year ended June 30, 2010, from which the <br /> summarized information was derived. <br /> SUBSEQUENT EVENTS <br /> Management has evaluated subsequent events for recognition or disclosure through April 4, <br /> 2012, which was the date that the financial statements were available to be issued, and <br /> determined there are no subsequent events that require disclosure. <br />