Corporate Accounting Policy Choices And Tax Planning Study

With the development of our socialist economies and the complication of the accounting, accounting policies play a major role in the financial systems, and the choice of the accounting policies becomes a need to the enterprises. In the market economy economic proprietors becomes more and more thoughtful of reducing tax burden. Weigh the advantages and disadvantages of the many ways of reducing the tax burden, the vast majority of people think that the best way is the legal tax planning.There is a close relationship between the choice of the accounting policies and tax planning. If the different accounting policy is applied to the same affairs, the accounting information of the economic results vary, therefore the tax based on the accounting information can be lowed or added. The paper will analyze how the accounting approach can be used in the tax planning and what is the effect of the tax planning on the choice the accounting policies.In China, the reducing of the burden through the tax planning is not attractive for most of the public companies, because those managers attempt to maximize the usefulness of them, which causes the opportunism in the choice of the accounting policies. However for the medium and small-sized enterprises the reducing of the burden becomes a important part in their financial work. In order to improve the efficiency the choice of the accounting policies, it is necessary to establish comprehensive mechanism.