A Study on the Compliance of the Accounting Result with the Fiscal Result
Author:
Univ. Prof. Tatiana DĂNESCU, Ph. D., Univ. Prof. Nicolae TODEA, Ph. D., Mihaela PROZAN, Ph. D. Student, Andreea Cristina DĂNESCU, Ph. D. Student
JEL:
M41, M42, M48
DOI:
Keywords:
accounting result, fiscal result, true and fair view, financial statements
Abstract:
In the actual economic and social context, marked by strong contradictions generated by the worldwide economic crises, which can be felt in all activity fields, this paper has the aim to approach and present the annual result from two points of view: accounting and taxation, in the attempt to reconcile them.\r\nIt is common knowledge that both the accounting policies adopted along the decision process by the entity’s management and the way these policies are understood and applied by the accounting expert - usually the entity’s employee - influence the size of the accounting result. In this view, without analyzing the underlying motives behind choosing a certain policy to another, the paper tries to acknowledge, based on the research’s outcome and through the effects discovered, that the way the fiscal result is calculated can produce a significant impact on the annual result. This aspect can be justified through the existing relationship between the adjusted annual result with the size of the tax burden and the fiscal result that determines exactly the quantum of the tax burden. Accordingly, considering the findings of this research, one can say that for the reporting of financial information of the entities applying fiscal regulations, both the accounting and the fiscal results can be significantly influenced by the management’s objectives. In some cases, these actions can cause severe irregularities with serious consequences.\r\n