Accounting Income

Este artigo tem como objetivo analisar a relação entre incentivos fiscais e indicadores econômico-financeiros de empresas abertas brasileiras não financeiras. A pesquisa é do tipo descritiva, com abordagem quantitativa; a população são as companhias abertas brasileiras, não financeiras, listadas na B3-Brasil, Bolsa e Balcão e a amostra final foi composta por 450 empresas. Os dados foram coletados através das demonstrações financeiras das empresas, disponíveis no banco de dados da Economática e tratados no Statistical Package for the Social Sciences-SPSS. Realizou-se o teste U de Man Whitney, em virtude de que a amostra não apresentou distribuição normal. Os indicadores considerados foram aqueles utilizados na literatura e que proporcionaram a análise da rentabilidade e dos impactos econômicofinanceiros das empresas. O principal resultado indica que companhias abertas brasileiras não financeiras que usufruem de incentivos ficais apresentam uma situação econômico-financeira mais favorável do que empresas que não usufruem de tais incentivos. A conclusão do estudo é que incentivos fiscais e indicadores econômico-financeiros de empresas brasileiras não financeiros têm forte relação.

A Lei nº 11.638/07 iniciou a convergência da contabilidade brasileira para as normas internacionais do IASB promovendo, entre outras, uma relevante modificação: a implementação da ampla hegemonia da essência sobre a forma – dito de outro modo, a prevalência da visão econômica na contabilidade financeira –, enquanto se manteve na contabilidade fiscal, majoritariamente, a predominância da perspectiva civil, que de forma inversa, privilegia a forma. Como os efeitos das novas regras contábeis causariam impacto positivo, nulo ou negativo no lucro tributário, a partir de 2008, foi instituído o Regime Tributário de Transição–RTT, com o objetivo de neutralizar-se todos os novos critérios de reconhecimento de receitas, despesas ou custos. As empresas ainda puderam, no biênio 2008-2009, optar ou não por esse novo regime, mas, a partir de 2010, sua adoção se tornou obrigatória. Entretanto, tratou-se de decisão difícil, principalmente, porque o prazo original era até 16/10/2009, quando o último...

This study aims to analyze the tax implications of financial instruments after International Financial Reporting Standards (IFRS) 9 adoption in Indonesia into Statement of Financial Accounting Standard 71 (PSAK 71). To gain an in-depth understanding regarding the implementation of PSAK 71, we conducted semi-structured in-depth interviews with policymakers, PSAK standard setters, academicians, tax consultants, and taxpayers. We also used case studies related to the convergence of IFRS 9 to identify the tax implications of implementing the new standard. The results show that the entities applying PSAK 71 generally measure and recognize financial assets or financial liabilities at fair value. Besides, they use amortized costs in specific conditions. However, current tax regulations relevant to financial instruments still refer to the acquisition cost following Article 10 of the Income Tax Law. Accordingly, the gains or losses in respect of financial instruments are not recognizable for tax purposes. Although fiscal correction has proven to be a panacea for bridging the gap between taxation and accounting standards, policymakers urgently need to revise the outdated regulations to provide taxpayers with legal certainty and ease of administration. The significant contribution of this study is the attempt to link the accounting and taxation aspect of financial instruments with the setting of Indonesia.

Accounting income and taxable income are both designed to capture the economic activities of an entity based on their own rules and assumptions. Despite all the differences in reporting objectives and measurement methods, accounting income forms the starting point for determining taxable income. This suggests that much of accountants' use of consistency and matching principles flows through to the legal measure of taxable income. This thesis argues that the principles in some select areas of financial reporting can be sanctioned more explicitly and enacted into the Income Tax Act (ITA) in determining the taxable income of corporations. It also recommends a new reporting schedule that requires taxpayers to disclose greater reconciliation between accounting and taxable incomes in a limited number of areas subject to any statutory or legal provisions to the contrary. The book-tax income gap can be divided into two components: a conceptual gap in computing income or profit and a second gap arising from policy-based deductions and/or aggressive tax planning. The conceptual gap is mostly due to different rules for the calculation of income based on section 9 of the ITA and case law in contrast to the rules for calculating book income based on accounting principles, such as International Financial Reporting Standards (IFRS). The second type of gap arises due to policy-based deductions in the ITA that may allow for more or less generous deductions or write-offs compared to accounting rules. This gap can also be caused by aggressive tax planning. This thesis contributes to the literature by exploring economic, accounting, and legal definitions of income in a setting with more recent business transactions. It estimates the gap between accounting income and taxable income based on the historical data of Canadian companies and the reasons why they may have diverged in recent years. It also argues why narrowing the gaps may be desirable-at least in some select areas. While this study was being conducted, the federal government introduced an elective mark-to-market regime for derivatives-an illustration of one of this dissertation's recommendations.

Applying appropriate accounting policies, in particular choosing alternatives to National Accounting Standards or International Financial Reporting Standards, can have a significant impact on financial results, as the entity may choose, within the law, to model or improve its financial statements. The analysis carried out in this article shows that there are certain aspects that can be modified to obtain an advantageous financial result for the entity, at the same time without violating the law, but only using correctly different accounting methods, for example valuation of fixed assets, income tax. , amortization of fixed assets, etc.

Corporate performance is a key in corporate accounting. One of the earliest accounting measures of corporate performance is accounting income. Accrual accounting enables the measurement of changes in net assets of an entity. Accounting income is neither scientifically determined nor proven. Accounting information often results from approximation and estimation when choice among alternatives is professionally judged, rather than exact measures and perceptions. Divergence in application of accounting policies in corporations under similar conditions may present different results. Some criticize corporate accounting, particularly after scandals related to financial statement fraud, for choices among procedures that accounting standards permit. However, choices in the application of accounting permitted procedures that accounting standards allow are based on professional judgment. Professional judgment enables accounting as a profession and allows accounting professionals to claim status in their respective communities. Exploring users' awareness of corporate reports in Saudi Arabia in terms of flexibility in using accounting methods when preparing corporate reports and analyzing their understanding of corporate reports, this study surveyed 72 financial statement users. Research has found that sufficient efforts must be made to obtain information when making investment decisions. As accounting income is a result of applied accounting procedures and methods, users perceive information published in the financial reports, including notes, as understandable. Flexibility in applying accounting standards is imperative for adapting to changes in the entity's business environment. Potential capital market investors must maintain a minimum level of knowledge; otherwise, they might be gambling their wealth or savings against the odds.

The objective of this paper is to derive a composite index from earnings and cash flows that could be used to better evaluate insurance companies. One significant difference between earnings and cash flows is depreciation, and in the case of insurance industry, the timing of recognition of premium income and expense paid out to claims can also cause significant difference between earnings and cash flows. Thus, there might be important components that are found in earnings of insurance companies but not in cash flows, or vice versa. We propose to create a composite index which is a weighted average of accounting earnings and cash flows that can explain stock return better than either earnings or cash flow alone. The advantage of this approach is that full information would be utilized for evaluating performance of insurance companies. Using this approach, we found that the optimal weight for earnings and cash flow for the insurance industry is found to be approximately 79% and 21%, respectively. Such information may help managers of insurance firm to better manage the cash flow in order to maximize value of the firm for shareholders.