Cash America 2012 Annual Report Download - page 81

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The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements in
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10-
25, Accounting for Uncertainty in Income Taxes (“ASC 740-10-25”). ASC 740-10-25 requires that a more-likely-than-
not threshold be met before the benefit of a tax position may be recognized in the consolidated financial statements and
prescribes how such benefit should be measured. Management must evaluate tax positions taken on the Company’s tax
returns for all periods that are open to examination by taxing authorities and make a judgment as to whether and to what
extent such positions are more likely than not to be sustained based on merit.
Management’s judgment is required in determining the provision for income taxes, the deferred tax assets and
liabilities and any valuation allowance recorded against deferred tax assets. Management’s judgment is also required in
evaluating whether tax benefits meet the more-likely-than-not threshold for recognition under ASC 740-10-25.
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RECENT ACCOUNTING PRONOUNCEMENTS
See “Item 8. Financial Statements and Supplementary Data—Note 2” for a discussion of recent accounting
pronouncements.