Income Tax Accounting Research

Since early in the 20th century, the relationship between accounting and income taxes has been becoming closing and closing which influenced each other more and more. In the early times, some developed countries (just as America, Britain etc.) started to research into accounting for income taxes. So the accounting for income taxes emerged. But it has been always a disputed discussion in the world since its emergence.Later on, the accounting for income taxes standard has become an important part of international accounting standards and accounting standards of many other countries, such as America. And the theory of accounting for income taxes is developing and improving day by day. However, in our country, it didn't gain enough attention and developed slowly.Before the reformation of accounting regulation in 1994, there were no differences between accounting profit and taxable profit in our country. When our country entered into WTO, it's most urgent to realize that our accounting standards and the international accounting standards are reaching unanimity.In 2007, it's the first time in our country that the accounting for income taxes standard becomes an important part of the newly issued accounting standard which comes into effect first in the public companies. The standard of accounting for income taxes is based on the Asset-liability View, and enterprises can make accounting treatment by balance sheet debt method only. Also, enterprises which use this method for the first time should trace back to and regulate the items about income taxes.In fact, most public companies and large enterprises have been used to applying to tax due method before. Clearly, it's a huge challenge both for the enterprises and the accountants to make balance sheet debt method as the only method of accounting for taxes income working in practice in accounting environment now. Is there any question during the process? Could I make some suggestion? So, I choose this topic as my paper topic.This paper is divided into four parts.In the first chapter, the definitions of several measurement attributes in American accounting standards and international accounting standards are indicated to analyze issues of accounting for income taxes: its meaning, its goal, its principles and the differences between accounting profit and taxable profit. It also introduces the history of accounting for income taxes standards in different countries.In the second chapter, it compares the different dealing method in accounting for income taxes, and analyzes advantages and disadvantages of different dealing method. On the basis of the analysis, it discusses the suitable conditions and choices of the dealing methods. It's just time for our country to use balance sheet debt method.In the third chapter, it points out the changes in the newly issued accounting standards in our country. In addition, the author draws on the experience of Humaoyun and Zhangru's research on the income tax influence of the use of the tax due method and the tax payment influence method. According to the analysis of some public companies' annual reports in 2006, the author analyzes the possible influence of the use of the balance sheet debt method in our country.In the forth chapter, it raises some possible problems in the practice process of the accounting for income taxes standard. Meanwhile, the author gives some suggestions and ideas on how to overcome and resolve the problems.