Taxation

Mike Davies, Ron Paterson and Allister Wilson
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Mike Davies: Ernst & Young
Ron Paterson: Ernst & Young
Allister Wilson: Ernst & Young

Chapter Chapter 18 in UK Gaap, 1992, pp 1001-1066 from Palgrave Macmillan

Abstract: Abstract A discussion of how to deal with taxation in financial statements must begin with some consideration of what it is that is to be accounted for. Although it might be supposed that this is a simple question, and that taxation is a business expense to be dealt with in the same manner as any other cost, it has certain characteristics which set it apart from other costs and which might justify a different treatment. These characteristics include the fact that tax payments are not made in exchange for any goods or services and the fact that the business has no say in whether or not the payments are to be made. It is held by some that these elements mean that taxation is more in the nature of a distribution than an expense; in essence that the government is a stakeholder in the success of the business and participates in its results (generally in priority to other stakeholders).

Keywords: Taxable Profit; Accounting Period; Extraordinary Item; Group Relief; Capital Allowance (search for similar items in EconPapers)
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-12998-0_18

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DOI: 10.1007/978-1-349-12998-0_18

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