Research On Income Tax Accounting In The Reforms Of Accounting System

Income tax accounting remains a weak point in Chinese accounting field. With reforms on accounting system and income tax system, discrepancy between accounting profit and taxable profits is becoming increasingly large under the circumstance that accounting system and income tax system are relatively independent from each other. It has become a pressing problem in accounting theory on how to establish a set of income tax accounting theory adaptable to national conditions, so as to coordinate the relationship between accounting and tax. By normative and positive methods, the essay analyzes current income tax accounting status in China and brings up proposals. The essay consists of five parts: Part one is foreword.It mainly introduces: research purposes , current research status in China, target set by the essay, adopted research methods, innovative ideas and research limits, and framework of the essay. Part two analyzes income tax accounting under the reforms on accounting system. Based on the first brief introduction on reforming processes of accounting system and income tax system, income tax accounting is analyzed by illustrating income tax properties, verification methods, discrepancies, accounting measurement on three stages. As the most obvious discrepancy occurred on last stage, the essay shows the major differences by tabular forms. Part three compares accounting measurement on income tax ,compares differences between flow through method and tax influencing accounting method ,deferral method and liability method, income statement liability method and balance sheet liability method. then analyzes international trends on accounting measurement of income tax. Part four analyzes income tax problems in the course of reforms. By positve methods, this part studies characteristics of discrepancies occurred in different industries as well as in different fiscal years. By establishing models, this part studies factors that influence shareholder companies' choices and changes of accounting handling methods on income tax. Part five studies current income tax account status in China and brings up proposals by means of normative methods combined with conclusions reached in example cases.