Providing harmonization of financial and tax accounting of corporate income: a theoretical and methodical aspect
DOI:
https://doi.org/10.21847/1728-9343.2016.3(143).74704Keywords:
income, financial account, tax account, harmonization, corporationAbstract
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.References
Vysoka O. Ye. (2010), The economic essence of the concept of profit and its formation, Naukovi pratsi KNTU. Ekonomical sciences, No. 17, available at: http://www.kntu. kr.ua/doc/zb_17_ekon/stat_17/44.pdf (ukr).
Kozak L. V., Kryvytska O. P., and Novoseletskyy O. M. (2012), Profits of companies: theoretical and methodological principles of forming and analysis, Ostrog National University Publisher, Ostrog, 160 p. (ukr).
Harasym P. M., Zhuravel H. P., Khomin P. Ya., Financial, administrative tax accounting in economic entities (JSC JSC, Ltd, POP, PAP), available at: http://www.pro-u4ot.info/files/books/book_fin_upr_pod_obl_gt.pdf (accessed 11.05.2016) (ukr).
Oliinyk L. H. and Shmychkova I.bYu. (2012), Tax accounting, evaluation, perspectives, Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomical sciences, Vol. 5, Part 3, pp. 151-153 (ukr).
Buhai I. V. and Kalchenko H. S. (2010), Models coexistence accounting and taxation abroad, Derzhava ta rehiony, No. 2, pp. 39-43 (ukr).
Haponenko O. Ye. (2015), Practical aspects of relationship management and tax accounting, Visnyk Kharkivskoho politekhnichnoho instytutu, No. 25 (1134), pp. 65-75 (ukr).
McGrath M. and Yotz С., Tax Differences - Fundamentals Every Accounting Major Should Know, available at: http://deloitte.12hna.com/dbriefs_u/ dbriefsu_booktaxdiff_slides.pdf (accessed 15.04.2016).
Chikisheva A. N. (2009), The financial, administrative, tax accounting: isolation or integration?, Mezhdunarodnyy bukhgalterskiy uchet, No. 3, pp. 41-47 (rus).
BlankI.A. (2002), Profit management, Nika-Centr, Elga, Kyiv, 752 p. (rus).
Babo A. (1993), Profit, Progress, Univers, Moscow, 176 p. (rus).
Galbraith John K. (1979), Economic theory and goals of society [translated], Progress, Moscow, 390 p. (rus).
Hendriksen E.S., Van Breda M. (1997), Accounting Theory [translated], Finansy i statisitika, Moscow, 576 p. (rus).
Khаrris L. (1990), Monetary theory [translated], Progress, Moscow, 750 p. (rus).
Khiks Dzh. (1993), Value and Capital [translated], Progress, Moscow, 488 p. (rus).
Hilferding R. (1922), Financial capital (latest phase of capitalist development) [translated], Moscow, 496 p. (rus).
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2016 Serhiy Bogachov
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
1. Authors bear responsibility for the accuracy of facts, quotations, numbers and names used.
2. Manuscripts are not sent back.
3. The publisher does not always agree with the authors' opinion.
4. The authors reserve the right to authorship of the work and pass the first publication right of this work to the journal under the terms of a Creative Commons Attribution Non-Commercial License, which allows others to freely distribute the published research with the obligatory reference to the authors of the original work and the first publication of the work in this journal.
5. The authors have the right to conclude separate supplement agreements that relate to non-exclusive work distribution in the form in which it has been published by the journal (for example, to upload the work to the online storage of the journal or publish it as part of a monograph), provided that the reference to the first publication of the work in this journal is included.
