Comparison Between American And Chinese Income Tax Accounting And Enlightenment On China

Income tax is one sort of taxes, it is the key role of the GNP. In 1993, owing to Accounting General Rules for Business Enterprises published, the contradiction between income tax and accounting is emerged increasingly. In 1994, the Ministry of Finance has focused on the development of specific standards entitled Income Tax Accounting.American is the earliest country in studying income tax accounting and has achieved the most greatly accomplishment. Since 1909, it has gone through one hundred years in discussing income tax accounting. It has been focused on three fields: one is the nature of income tax accounting, another is the tendency about institution of working out standards, the other is the degree and method about inter-period allocation of income taxes. The focal point is the choice Deferred and Liability Method. From now on, it has experienced three phrases: "Liability Method-Deferred Method-Liability Method". In different period, there exist the different circumstances, so the suitable method has becoming the topic in discussing.There are five parts. Part one, Introduction. It briefs the necessary of studying income tax accounting, the present situation of home and abroad and the thinking and method of discussing. Part two, Fundamental theories of income tax accounting. It elaborates the prime notions and the relationship between accounting and taxes. Part three, It introduces the evolution of income tax accounting about American. Part four, Comparison and analysis about accounting circumstance between American and Chinese. By way of comparing the circumstances in different counties, it discusses the processing of income tax accounting. Part five, According to the condition of our country, it tries to find out the suitable processing. Finally, it is the conclusion.