Study Of Income Tax Accounting Based On Apparent Balance

Users of accounting information primarily make investment decisions through the information in the financial statements, so providing true, reliable and relevant information for users of financial statements is the accounting standard setters responsibilities. Income tax is an important item in the report, which not only reflects the company's tax liability, but also an important source of state revenue. As the objectives and requirements of accounting standards and tax are different, thus creating differences in recognition and measurement of assets, liabilities, income, the cost, and then come out of another branch of the accounting--Income Tax Accounting. The "Enterprise Income Tax Provisional Regulations on Accounting Treatment" was introduced at June 29,1994, it regulated the accounting treatment of income tax for the first time. From 1994 to 2006, China has adopted the concept of the tax payable method and a profit tax effect accounting method under the income tax treatment. In 2006, China promulgated a new corporate accounting standards, accounting standards in the new company introduced the concept of apparent balance, and be reflected in a number of criteria, especially the "Accounting Standards for Enterprises No.18 an income tax," fully reflects the apparent ideological balance. In the new income tax accounting standards require the accounting treatment of corporate income tax adopted in line with international accounting standards balance sheet liability method, to cancel the original concept of the tax payable method and the income statement under the tax effect accounting method, designed to improve quality of accounting information. However, income tax accounting standards in the development, due to the situation at that time and other factors, many provisions in the income guidelines, or with a certain Chinese characteristics, is more important is the criteria for only some differences between regular and widespread and carried out specifications exist for the practice, and as more and more economic development of some business rules or they did not have sufficiently detailed specifications, such as goodwill, income tax issues arising from the investment income generated by the issue of shares to pay income tax issues arising and so on. This accounting practice will result in the business sector when there is nothing to attendants of the situation, the quality of accounting information will ultimately be affected. Based on this, listed companies in China in 2008-2009, the status of implementation of accounting for income taxes based on the existence of the existing guidelines do not regulate some of the ambiguity and discuss the business, combined with income tax law for a more systematic study.