ARUN » Topics » Income Taxes

These excerpts taken from the ARUN 10-K filed Oct 7, 2008.
Income Taxes
 
The Company uses the asset and liability method of accounting for income taxes in accordance with SFAS No. 109, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible


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ARUBA NETWORKS, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
temporary differences, along with net operating loss carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.
 
Effective August 1, 2007, the Company adopted FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes- an Interpretation of FASB Statement No. 109, (“FIN 48”). This interpretation requires the Company to recognize in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained. As a result of the implementation of FIN 48, the Company did not record any changes to the liability for unrecognized tax benefits related to tax positions taken in prior periods, and no corresponding change in accumulated deficit. Additionally, the Company did not make any reclassifications between current taxes payable and long-term taxes payable upon adoption of FIN 48. See Note 10 of Notes to Consolidated Financial Statements for a further discussion regarding the adoption of FIN 48.
 
Income
Taxes



 



The Company uses the asset and liability method of accounting
for income taxes in accordance with SFAS No. 109,
Accounting for Income Taxes. Deferred tax assets and
liabilities are recognized for the estimated future tax
consequences attributable to differences between the
consolidated financial statement carrying amounts of existing
assets and liabilities and their respective tax bases. Deferred
tax assets are recognized for deductible





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Table of Contents





 




ARUBA
NETWORKS, INC.




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



temporary differences, along with net operating loss
carryforwards, if it is more likely than not that the tax
benefits will be realized. To the extent a deferred tax asset
cannot be recognized under the preceding criteria, a valuation
allowance is established. Deferred tax assets and liabilities
are measured using enacted tax rates in effect for the year in
which those temporary differences are expected to be recovered
or settled.


 



Effective August 1, 2007, the Company adopted FASB
Interpretation No. 48 Accounting for Uncertainty in
Income Taxes- an Interpretation of FASB Statement No. 109,
(“FIN 48”). This interpretation requires the
Company to recognize in the consolidated financial statements
only those tax positions determined to be more likely than not
of being sustained. As a result of the implementation of
FIN 48, the Company did not record any changes to the
liability for unrecognized tax benefits related to tax positions
taken in prior periods, and no corresponding change in
accumulated deficit. Additionally, the Company did not make any
reclassifications between current taxes payable and long-term
taxes payable upon adoption of FIN 48. See Note 10 of
Notes to Consolidated Financial Statements for a further
discussion regarding the adoption of FIN 48.


 




This excerpt taken from the ARUN 10-K filed Oct 12, 2007.
Income Taxes
 
The Company uses the asset and liability method of accounting for income taxes in accordance with SFAS No. 109, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.
 
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