The Impact of Taxation Policies on Financial Accounting Practices: A Comparative Analysis
Keywords:
Financial accounting, taxation policies, accounting standards, tax treatments, corporate reportingAbstract
Financial accounting practices are significantly influenced by taxation policies, which can have a profound impact on a company's financial performance and reporting. This article conducts a comparative analysis of the impact of taxation policies on financial accounting practices across different countries and industries. The study examines how various taxation policies, such as tax rates, deductions, and credits, affect financial accounting practices, including revenue recognition, expense classification, and asset valuation. The analysis reveals that taxation policies can influence financial reporting quality, earnings management, and corporate governance. The findings of this study have important implications for policymakers, regulators, and accounting professionals, highlighting the need for a nuanced understanding of the interplay between taxation policies and financial accounting practices.
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