Providing harmonization of financial and tax accounting of corporate income: a theoretical and methodical aspect
Keywords:income, financial account, tax account, harmonization, corporation
The purpose of the article is to explore and generalize a theoretical and methodical basis for the harmonization of financial and tax accounting of corporate income.
The financial and tax accounting are characterized, as well as the necessity to harmonize them. The role of income as an economic category and practical index used in the financial analysis is shown. Three concepts of income as an increase in enterprise's net assets are analyzed. It was determined that a differentiation of concepts is associated with the process of development of the joint-stock form of management. To determine income the methods are presented from the perspective of capital maintenance (welfare) and from the perspective of its maximization (excess of revenues over expenditures). To obtain the reliable and comparable financial information the paper considers the approaches to accounting the revenues and expenditures on the basis of using relevant principles. The impact of rules of establishing and recognizing revenues and expenditures on the value is assessed that is an essential condition for the harmonization of financial and tax accounting of corporate income.The use of theoretical and methodical approaches to providing the harmonization of financial and tax accounting of corporate income will improve the transparency and publicity of corporate activities. This in turn will make corporations more attractive for potential investors and their activities on securities market more effective.
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Copyright (c) 2016 Serhiy Bogachov
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