The Concrete Manifestation Of Differences Between Accounting Standards And Tax Laws

The Levy of tax is a legal act, and its legitimacy must be supported by reliable evidence. Compared with fair value, historical cost is weakly correlated, but its reliability is very strong. It can provide strong evidence in tax related lawsuits.

Therefore, the tax law is most sure of the historical cost. Even when the accounting system abandonment the historical cost principle in some cases, the tax law still takes the policy of sticking to it.

However, with the progress of technology and the intensification of competition, price changes have expanded significantly and frequently. The usefulness of historical cost has been questioned in many ways.

Fair value has attracted much attention and has been introduced into accounting standards more and more. It has become a trend and trend.

In recent years, the concepts of "debt restructuring" and "non monetary pactions" promulgated by China have frequently used the concept of fair value. However, almost all of them have not been recognized by the tax law, and the two party is right.

Different viewpoints and different attitudes towards fair value will inevitably bring about a lot of differences, and a lot of tax adjustments should be carried out.

It means that the confirmation of income and expense should be based on the actual occurrence of income and expense as the basis for confirming the measurement. Any income that has been realized and the expenses that have occurred during the current period, whether the money is paid or not, should be treated as the income and expenses of the current period.

Accrual basis is the time basis for accounting confirmation, which involves all accounting matters.

Accounting standards emphasize the accrual basis as the basis of accounting. The purpose is to correctly reflect the profitability of each accounting entity and accounting objects, and the accounting information provided is true and fair.

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We must follow the accrual basis and take the accounting of the right and obligation as the precondition, which is consistent with the basic spirit of the tax obligation determined by the tax law. However, the large amount of accounting estimation tax law brought about by accrual basis will not be recognized.

Generally, tax law tends to accrual basis in terms of income recognition, and it is more inclined to adopt payment realization system in terms of expense deduction.

First, the accounting standard explains the prudence principle. When faced with uncertain factors, it neither overestimates assets or gains, nor underestimates liabilities or losses.

The tax law's understanding of prudence principle emphasizes tax prevention.

Secondly, the accounting standards fully reflect the requirement of prudence principle, which stipulates that enterprises can make provision for bad debts, inventory depreciation, short-term and long-term investment impairment provision, and so on. Eight.

Enterprises can adopt the lower cost and market price method, compare end inventory, short-term investment and long-term investment.

However, the tax law only provides for the provision of bad debts, but has not made corresponding provisions for the other seven impairment provisions.

In short, the tax law basically has a negative attitude towards the prudence principle, and the prudence principle has become an important source of income tax discrepancy.

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1. limitations of accounting standards and accounting systems.

Accounting standards and accounting systems are the basic norms of accounting, and they are the provisions on accounting principles, accounting methods and accounting information disclosure methods.

Accounting standards and accounting systems are the basic norms of accounting and reporting. Their inherent limitations are the institutional reasons leading to the distortion of accounting information: first, accounting estimates and professional judgments cause distortion of accounting information.

Accounting standards and accounting system are the bridge linking accounting theory with accounting practice.

There is a great deal of estimation and professional judgment in accounting itself. The closer accounting estimates and accounting judgments are, the more real accounting and accounting reports can reflect the true operating results and financial status of accounting entities.

The estimation and judgement in accounting make accounting information more or less exist that can not truly and accurately reflect the actual operation result and financial condition of accounting entity.

Therefore, the greater the number of accounting estimates and judgements, the greater the subjective components, the harder to ensure the accuracy of accounting information.

The two is the selectivity of accounting methods, which leads to distortion of accounting information.

Various accounting methods are stipulated in accounting standards and accounting systems.

Such as inventory valuation method, depreciation method of fixed assets and so on.

The different accounting methods reflect the financial status and the operating results of the accounting entity. The more options are available, the more inclined the accounting entity will choose the way to reflect their financial situation and business results. This leads to the loss of accounting information to a certain extent.

2. the interest conflict factors of the main body of enterprise property rights.

The main body of enterprise property rights is composed of individuals related to the government, creditors, owners and so on. Different individuals have different economic purposes.

The government is most concerned about tax revenue; creditors are most concerned about whether their debts are recovered on time; the owners are concerned about whether assets can be maintained or increased; and whether the operators concerned about the increase in performance can bring more economic benefits to them.

Different behavioral objectives are driven by different interests, and conflicts of interest inevitably arise.

The direct management of an enterprise is directly responsible for the operation and operation of an enterprise. On the basis of its own interests, the operator will only provide the amount of information disclosing marginal revenue equal to marginal cost, that is, the amount of information disclosure satisfies the requirement of maximizing its own interests.

Because of the symmetry of the information department, the owners can not make a reliable judgement on the performance, capabilities and prospects of the enterprises, nor do they have a certain standard to choose more operators. Therefore, the owners may choose the managers according to their performance. This leads to the phenomenon of inferior accounting information expelling high-quality accounting information.

3. the internal quality factors of enterprises and units.

First, there is a poor sense of accounting law and accounting responsibility of the person in charge.

The person in charge of a unit as the first person in charge of accounting work shall be responsible for the accounting work and the authenticity and integrity of the accounting information in the implementation of the accounting law, that is, the quality of accounting information.

Because accounting information is a comprehensive reflection of the financial status and operating results of a unit, it embodies the operation and management level of a unit. Therefore, the behavior of whitewashing accounting statements, preparing false financial reports, making accounts outside accounts, and setting up small Treasuries are mostly related to the instructions and instructions of the units responsible.

Two, accountants' professional ethics and professional skills are low.

Accountants, as providers of accounting information, are responsible for the quality of information provided by them.

The quality of accounting information is related to the professional quality and professional ethics of accountants.

The information provided by accountants should be accountable to the state, investors and creditors, and the reliability of information provided by the outside world must be strong.

However, because of the uneven quality of accountants, accounting and accounting supervision can not be carried out well, even some accountants' professional ethics are lost, and the concept of legal system is weak.

Three is the unit internal control system is not perfect.

Many units lack of basic accounting work, lack of internal constraints and supervision, have not established and improved the corresponding accounting control system, and the positions of Finance and audit are not separated, resulting in collusion between internal staff and embezzlement of state property.

Accounting books and "small Treasuries" have repeatedly been banned, there is no law, no serious investigation is illegal, and accounting supervision has been seriously weakened.