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Under the recognition step, a "more-likely-than-not" threshold is used to recognize and measure tax positions. The more likely than not threshold means that benefit related to an uncertain tax position may not be recognized in the financial statements unless it is more-likely-than-not that the position will be sustained based on its technical merits and There must be more than a 50 percent likelihood that the position would be sustained upon audit. Base on its technical merits means that the tax position will be examined and evaluated by the relevant taxing authority with full knowledge of all relevant Information...
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