search query: @author Guenther, D. A. / total: 3
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| Author: | Guenther, D. A. Maydew, E. L. Nutter, S. E. |
| Title: | Financial reporting, tax costs, and book-tax conformity |
| Journal: | Journal of Accounting & Economics
1997 : NOV, VOL. 23:3, p. 225-248 |
| Index terms: | FINANCIAL REPORTING FINANCIAL PLANNING TAXATION COSTS EARNINGS |
| Language: | eng |
| Abstract: | This study investigates the role of book-tax conformity in firms' financial reports using a set of publicly traded companies that were forced to switch for tax purposes from the cash method to the accrual method. Little trade-off existed between tax planning and financial reporting goals for the firms, prior to the mandated change. Afterwards, recognition criteria for tax and financial reporting purposes became more alike increasing the trade-off between financial reporting and tax objectives. Required use of the accrual method for tax purposes causes companies to defer income for financial statement purposes. |
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